By Michael Elkins
Citi reiterated a High Risk Buy rating and a $21.00 price target on Fisker (NYSE:FSR) after opening a 90-day upside catalyst watch on the stock.
“We’re intrigued by the Fisker risk/reward setup into the Q1 update”, wrote analysts.
The company issued encouraging 2023 guidance vs. EV peers. However, Fisker shares have weakened, likely on macro concerns. Analysts believe that the next few months are key.
“If Fisker delivers on all/most NT milestones (homologation, production ramp, 2023 guide), we think the narrative can rapidly change from one of heavy skepticism today to one that embraces the Ocean’s compelling EV specs/price-points, the asset-light model and the company’s growth objectives,” analysts said.
With a market cap at a fraction of peers, despite favorable product and ‘23E volume/margin comps, the upside case appears sizable if Fisker can deliver in the coming months. However, if they can’t, shares will likely suffer downside, but with liquidity looking intact through 2023E, that should provide some cushion in the early part of the year.
Shares of FSR are up 5.58% in pre-market trading on Monday.