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Morgan Stanley lowered its price target on electric car maker Fisker (NYSE: FSR) to Heavy Weight from Equal Weight Wednesday.
Analyst Adam Jonas and the team said they like Fisker’s style, but question whether the company can afford the option. about production at scale.
Jonas and team kept FY23 and FY24 revenue estimates unchanged, but now expect the second half of the decade to see lower revenue as the EV adoption trend is pushed to the right.
“While we love FSR’s story and strategy (design, engineering, and support processes and their relationship with Tier 1 supplier Magna-Steyr), FSR’s need for capital, an unfair imbalance of supply and demand in the EV space (where even Tesla, which is the current market leader, has announced a global price cut, and the potential market for EVs at a time when things are very volatile makes us lower the stock at UW.”
Morgan Stanley assigned a price target of $4 to Fisker (FSR), which is 2.6X estimated 2030 EBITDA, 4.9X 2030 earnings, and 0.2X 2030 sales. A bull case PT of $15 and a bear PT of $1 from Morgan Stanley are also part of the matrix.
Shares of Fisker (FSR) fell 6.99% premarket at $6.79 versus a 52-week range of $6.41 to $14.74.
The clock for the electric car section: Read Tesla reviews.
