Baird analysts started coverage on Nikola (NASDAQ:NKLA) with an Outperform rating and a price target of $2.00. Shares jumped more than 10% intra-day on Wednesday.

The analysts noted the considerable potential in the zero-emissions trucking market and believe that Nikola has now successfully assembled the right management team to exploit this opportunity. They view Nikola's proprietary design and software as major differentiators compared to traditional diesel trucks. The analysts anticipate several potential catalysts for Nikola in the near future, particularly in its Truck and Energy divisions. These include advancements in manufacturing processes, forthcoming announcements regarding customers and partnerships, and the expansion of hydrogen infrastructure.

The analysts suggest these developments could positively impact Nikola's market position and valuation.