XOS - Xos trades up as Goldman Sachs praises low cost strategy

Xos, Inc. (NASDAQ:XOS) trends upward 1.05% before the market opens as Goldman Sachs initiates coverage on the stock with a Neutral rating. "We are positive on XOS’s low cost product strategy, underpinned by its vertically integrated battery pack and proprietary battery management system," write analysts led by Jerry Revich. He praises the company's distribution network and the presence of initial customers including UPS (NYSE:UPS) and FedEx (NYSE:FDX). However, competition in the sector is too high for Goldman Sachs to rate the company higher and supply chain constraints look to weigh on earnings. The firm would be more positive on the stock if battery costs declined. Goldman Sachs assigns a price target of $4.25 to Xos, representing 12% upside from its closing price of $3.81.

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Xos trades up as Goldman Sachs praises low cost strategy