A few analysts have trimmed their projections for Fisker (NYSE:FSR) stock despite a strong showing in its recent quarterly update.
Financial services company Citi maintained a ‘Buy’ rating on FSR stock but has lowered its price target to $27 from $29. Analyst Itay Michaeli states that the company demonstrated solid execution during the quarter despite the challenging macroeconomic conditions. Moreover, it affirmed key timelines and this year’s financial outlook.
Furthermore, Cowen analyst Jeffrey Osborne maintained an ‘Outperform’ rating on the stock but lowered its price target from $28 to $19. He states that the addition of 14,000 new reservations was an encouraging result for the company. Moreover, he expects marketing efforts to pick up later in the year.
Reservations for its flagship Ocean One SUV continue to grow with every passing quarter. They stand at over 45,000, which also includes 1,600 fleet reservations. This is almost a 50% increase from its last earnings call.
The Ocean One SUV is the company’s first EV, but its ambitions go beyond one all-electric sport utility vehicle. It has already announced its second production car called Project Pear, launching in 2024. It recently announced its third electric vehicle, an all-electric luxury sports car codenamed Project Ronin. Moreover it could have the longest range for any EV currently in production.
It’s a challenging road ahead for Fisker as it looks to ramp up production of its EVs. So far, it has affirmed key product launch timelines and its financial outlook. Moreover, with healthy growth in its reservations, I feel Fisker is remarkably underrated by the market.
On the date of publication, Muslim Farooque 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