Ola Electric shares fall 2% as Citi slashes target price by over 18%. Here’s why brokerage is bearish

-66.4

Market Impact Score

-100 Bearish+100 Bullish

AI Analysis

The Indian auto sector, particularly EV players, is facing scrutiny over profitability and market share. This news adds to the negative sentiment already prevalent in the broader auto market.

Trading Insight

Maintain a cautious stance on EV-focused auto stocks, especially those with unproven profitability models, looking for further signs of market consolidation or improved financial outlooks.

Quick check: MARUTI bearish bias (oversold), TATAMOTORS bearish bias (oversold).

Key Evidence

•Ola Electric share price tumbled 2%.
•Citi Research slashed its target price by 18.5% to Rs 22.
•Reasons cited include downward revenue revisions and market share pressures.
•Brokerage anticipates Ola Electric will not achieve EBITDA break-even even by FY28.
•Risk flag: Intensifying competition in the EV segment

Affected Stocks

Ola Electric

Negative

Citi Research slashed its target price by over 18% due to revenue revisions and market share pressures, anticipating no EBITDA break-even by FY28.

Sectors:Automobile Electric Vehicles

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