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 .
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Baird downgrades Embark Technology after heavy headcount cuts