The old Fisker (NYSE:FSR) versus Tesla (NASDAQ:TSLA) discussion. Wait — that’s a thing, right? Well, today, the FSR stock versus TSLA stock discussion appears to be in focus as analyst review season is in full swing.
Shares of these electric vehicle (EV) makers have been more volatile than usual this year, spiking and declining in incredible fashion. However, lately, FSR stock has outperformed TSLA stock broadly as investors look to potentially diversify their holdings and switch over to more speculative stocks with higher growth potential.
Indeed, Tesla’s no slouch in the growth department. However, there’s an increasingly bullish view on Fisker’s forward-looking potential. That’s not my opinion but rather that of analysts covering these stocks.
Let’s dive into how analyst opinions are shifting and what’s driving a divergence among EV stocks of late.
FSR Stock Moves Higher on Analyst Upgrade
Today, Fisker received a boost from analysts at Tudor Pickering Holt. These analysts initiated coverage on FSR stock with a buy rating at a $19 price gauge.
Indeed, given the fact that FSR stock closed yesterday at $13.66 per share, that target price represents potential upside of 39% for this EV player. Not bad.
Why all the optimism?
Well, these analysts pointed to an improved risk-reward outlook for FSR stock on the basis of “reasonable assumptions on production and sales.” Given Fisker’s potential production model, which the analysts view as asset-light with excellent operating leverage potential, it appears Fisker is being viewed as a high-risk, high-reward bet in this space. Like Tesla, investors who are betting on transformational growth appear to be shifting their view to Fisker as a potential winner in this speculative space.
Of course, these assumptions are based on the ability of Fisker to meet production deadlines and grow as expected. Accordingly, investors in FSR stock are taking on some execution risk with owning this name.
However, this price target certainly indicates there’s room to be bullish on Fisker’s prospects from here. Therefore, this is a stock I’ll be watching closely in the weeks and months to come.
On the date of publication, Chris MacDonald 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.