Evercore initiates coverage on Fisker, Rivian and Lucid

© Reuters. Evercore initiates coverage on Fisker (FSR) Rivian (RIVN) and Lucid (LCID)

By Michael Elkins 

Evercore ISI has initiated coverage on Fisker (NYSE:FSR), Rivian (NASDAQ:RIVN), and Lucid (NASDAQ:LCID), seeing each of the electric vehicle companies with significant vehicle potential approaching 2030. Evercore believes that each of these companies has a unique position in the industry and that they have the potential to become major players over the next decade.

Evercore analysts wrote, "Fisker, Rivian, and Lucid each have unique positioning in the industry and have the potential to become major players over the next decade. Rivian has developed a powerful lifestyle brand while also building a deep vertically integrated stack of internal software, hardware, and mechanics, while Lucid has the world's most efficient e-powertrain and a refreshing take on the "beyond luxury" market. Fisker, the stock we are currently most bullish on, over the near-term, we believe, can leverage Magna Steyr for complete vehicle manufacturing, thus avoiding the $5-8Bn in capital funding required needed by RIVN/LCID through 2026."

Fisker, Rivian, and Lucid each have a unique and growing place in the automotive industry's EV future. For perspective, Evercore forecasts the combined volume of ALL 3 at less than 500k units by 2025, yet 2030 volumes approaching 2M. Each company also boasts exciting products and features with no legacy dilemmas to navigate. However, they each will have their own troubles securing the capital required for growth through 2025.

Evercore started Fisker at outperform with a $15 price target. Fisker operates using a different business model than RIVN or LCID, with an asset-light structure as vehicles are developed and designed in-house but built via contract manufacturer. Evercore is bullish on the stock and sees a 40-50% upside to 2023 revenue consensus and a path to ~40k deliveries, easing the negative sentiment surrounding the former SPAC and unlocking a higher valuation.

Rivian was initiated with an in-line rating and a $35 price target. RIVN represents the largest and most well-funded company of the 3. The R1T pickup won rave reviews for its branding and unique tech/features, while the R1S SUV launch is ongoing, with a smaller, less costly R2 platform in the works. Evercore initiated In-line, although with a positive bias as they believe a catalyst path exists as we progress through 2023.

Lucid earned an in-line rating and a $12 price target. The company has both extensive vertical integration and a leading e-powertrain aimed at the ultra-premium EV segment with the debut Air Sedan and plans for an even more premium Gravity SUV as well as a lower-cost CUV. Lucid was initiated with an in-line rating, although with a negative bias, as Evercore believes the company has a long way to go on both TAM expansion & high funding needs.

Shares of FSR and RIVN are up 2.48% and 0.73% respectively in pre-market trading on Wednesday.

Shares of LCID are up 0.97% in pre-market trading.