EMBK - Baird downgrades Embark Technology after heavy headcount cuts

2023-03-07 13:30:59 ET

Baird stepped to the sidelines on Embark Technology ( NASDAQ: EMBK ) following the company’s decision to lay off hundreds of employees.

“We are downgrading to Neutral from Outperform after EMBK recently announced a workforce reduction of 70% and is exploring strategic alternatives to commercialization and company assets,” equity analyst Ben Kallo wrote. “While the announcement does not guarantee a change in strategy, we believe continuing operations on EMBK's current course is unlikely.”

He lowered his price target to $3 from a prior $15 alongside the downgrade. Shares have fallen over 30% since the announcement of the headcount reduction.

Read more on the details of the workforce reduction .

For further details see: