Shares of Fisker (NYSE:FSR) stock are running higher on Tuesday after an analyst made his call on the shares and set a promising price target.
Bank of America analyst John Murphy gave FSR stock a “Buy” rating with a price target of $31. This comes after the financial institution said it believes that the electric vehicle (EV) manufacturer is “a beneficiary of the automotive industry evolution towards electrification.” And to BofA, that is enough to make the call.
“More specifically, we believe that certain aspects of its go-to-market and commercialization strategy have merits and its product is relatively compelling,” BofA said.
Additionally, the stated price target value comes from Fisker’s enterprise-value-to-sales and enterprise-value-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratios based off of 2025 estimates. That said, Murphy and the BofA team believe the figures are in line with others in the EV industry, including a major player in the space.
“This is somewhat in line with TSLA’s early trading multiples (forward five-year basis) and about in line with average multiples from the start-up EV OEM universe, which reflects the still nascent stage of the EV industry and fierce competitive landscape among incumbents/entrants,” Murphy and BofA said.
FSR stock was up 5% as of Tuesday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.