Shares of Fisker (NYSE:FSR) stock are taking off on Tuesday after one Wall Street insider expressed a strong bullish case for the electric vehicle (EV) firm today.
Morgan Stanley analyst Adam Jonas is extremely high on Fisker, resuming his coverage with an “overweight” rating and a price target of $40 per share. Additionally, Jonas also set a new bullish case for $90 per share. That said, FSR stock closed at $15.03 per share on Monday afternoon — meaning upside of 166%.
According to MarketWatch, Jonas told investors, “We believe (Fisker) may be one of the only EV-related startups to actually launch on time and ramp efficaciously in late 2022.” The outlet also reported that Jonas said that the EV firm’s business model is “to be an EV design-and-engineering lab and consumer-experience ‘architect.'”
With all of that in mind, the launch Jonas was referring to is Fisker’s Ocean vehicle. The SUV is slated to release in late 2022, and this was confirmed in mid-June when Fisker signed a long-term manufacturing agreement with Magna International (NYSE:MGA). According to the release, the Ocean will begin production on Nov. 17, 2022 at Magna’s Austria-based facility.
The deal with Magna initially began back in January with the companies working to further develop Ocean’s Advanced Driver Assistance System (ADAS). And while this technology will include features like cameras and sensors, “the ADAS package includes a unique and first-to-market digital imaging radar technology.”
So, because of this development of a previous agreement and Fisker’s business overall, Jonas believes FSR stock can truly take off.
FSR stock was up more than 18% as of Tuesday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.