A Wall Street Analyst’s Nod has Boosted Confidence in Fisker Stock
Good companies don’t need Wall Street experts’ seal of approval — but it certainly doesn’t hurt. Fisker (NYSE:FSR) recently got a favorable rating from a prominent analyst, and FSR stock owners should be happy about that.
It’s a bold move for an analyst to have a bullish stance on Fisker. After all, this is a company that’s prepared to disrupt the combustion engine-dominated automotive market as we know it.
Moreover, as we’ll see, FSR stock has fallen from its peak price in 2021. It requires vision and confidence to see the share price going higher from here.
But then, visionary investors can sometimes be the most successful ones. So let’s take a ride into the exciting world of zero-emission vehicles and explore the past and potential future trajectory of this fast-moving stock.
FSR Stock at a Glance
It’s not an exaggeration to say that FSR stock made a swift move to the upside on Aug. 10. On that day, the share price rose 21% from the previous day’s closing price to land around $18.30.
We’ll discuss why that happened in a moment. For the time being, though, it’s important to know that Fisker shares could move much higher.
FSR stock’s 52-week high is $31.96. Therefore, while it’s exciting to see it break through the $18 level, that might just be the first stop on a longer journey.
$20 was a resistance point in June of this year as well as September and November of last year. That’s the level for investors to keep an eye on.
The stock went vertical in late February of 2021, so sharp moves aren’t unusual for FSR stock.
We should expect some volatility along the way. Still, that’s not necessarily a reason to panic-sell if the price action gets choppy. It’s really just par for the course with electric vehicle (EV) stocks.
Fisker Is Ready to Ramp Up
It’s interesting to consider that a single analyst’s opinion can move a stock’s price by more than 20% in a single day. Yet FSR stock is an example of this.
Morgan Stanley analyst Adam Jonas is clearly bullish on Fisker’s prospects as the automaker prepares to finally roll out its flagship vehicle next year.
“We believe FSR may be one of the only EV-related startups to actually launch on time and ramp efficaciously in late 2022,” Jonas declared.
He’s referring to the all-electric Ocean SUV, which Fisker plans to start producing on Nov. 17, 2022. Both investors and anyone planning to buy an Ocean EV will need to be patient with the company.
In any event, the Morgan Stanley analyst seems hopeful that Fisker will commence production in a timely manner.
Why One Wall Street Analyst Is Aiming High
In fact, Jonas is so confident that he assigned an “overweight” rating and a $40 price target to FSR stock. Now, the skeptics might see that as too ambitious. Granted, the share price would almost need to triple in order to get there.
However, Jonas’s rosy outlook isn’t without merit.
He’s apparently counting on Fisker launching the Ocean on time. This shouldn’t be too much of a problem, as November 2022 is still a long way in the future.
Jones also cited the potential for EV demand to exceed supply. Additionally, Fisker already has an agreement in place which will cover all critical planning and launch phases of the Ocean. This can help prevent potential hiccups along the way.
When you take all of these factors into account, maybe the price target isn’t unrealistic at all.
The Takeaway on FSR Stock
One analyst’s opinion shouldn’t change your decision on whether or not to own a stock. That being said, it’s encouraging to hear what Jonas has to say about FSR shares.
Perhaps a nearly-tripled price is in the cards for Fisker. It will just take some time and a good measure of patience from faithful investors.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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