All eyes are on the electric vehicle (EV) market after Rivian’s (NASDAQ:RIVN) much anticipated initial public offering (IPO). EV maker Fisker (NYSE:FSR) received a price target upgrade from $18 to $24 by Bank of America analyst John Murphy. In response, shares of FSR stock are soaring 15% higher today on elevated volume.
Like many other EV companies, Fisker is not yet profitable. Investors in FSR stock are betting on the production of the Fisker Ocean in November 2022. Fisker is partnering with automotive manufacturer Magna Steyr (NYSE:MGA) to create these new vehicles. Fisker also announced plans to partner with CATL, an accredited battery maker based in China. The plan as of now is to start deliveries in late 2022 or early 2023.
However, with supply chain delays and chip shortages, the release could very well be delayed. The EV company is also ramping up its spending in preparation for production. Critical research and development spending grew by more than 100% in Q3 when compared to the previous quarter. As of now, Fisker remains an extremely speculative stock in a competitive, but hot, market.
With that said, FSR stock has returned 28% over the past three months and 43% year-t0-date, outpacing the S&P 500 in both timeframes. Several tailwinds, such as the increasing popularity and acceptance of EV vehicles and the $1 trillion-plus infrastructure bill, have propelled Fisker’s returns this year.
Let’s take a look at what other analysts on Wall Street think of Fisker.
FSR Stock Price Predictions: How High Can Fisker Go?
- Morgan Stanley has a price target of $40. Analyst Adam Jonas believes that the Ocean model will launch on time in 2022 and attract high demand levels.
- Credit Suisse has a price target of $32. Analyst Dan Levy stated, “We believe the combination of current low penetration levels and accelerating uptake provides Fisker with a solid opportunity to make its place in the market.” Levy believes the Fisker Ocean model will have a huge impact on FSR stock, as it will pave the way for future models and offer a first impression for consumers.
- RBC Capital has a price target of $26. Analyst Joseph Spak sees Fisker as an attractive risk/reward investment that leverages reputable manufacturing partners.
- Barclays has a price target of $16. Analyst Brian Johnson says an investment in Fisker is not “without considerable risk” but also said that the company has potential to produce a “fast-cycle design more akin to fashion than automotive.”
- Finally, the average price target from 10 firms covering Fisker is $23.
On the date of publication, Eddie Pan 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.
