Cowen analysts see the Manhattan Beach, Calif., company as being "the opposite of the ramp experience that Tesla witnessed," while it leverages Magna International (MGA) - Get Report to produce vehicles "in a capital-expenditure-light manner."
"Fisker has about 9,000 paid deposits for the Ocean, which fully covers our anticipated 2022 production," analyst Jeffrey Osborne said.
"Fisker is building an 'experience center' in Los Angeles in May, as well as adding influencers and celebrities to help build the brand. We anticipate this will drive [the] deposit base higher in 2021 and serve as a catalyst for [the] shares in the pre-production period."
The $22 price target reflects a two-times multiple on the company's fiscal 2023 revenue, a 70% discount to rival Tesla's current multiple.
Fisker shares at last check jumped 28% to $13.93.
That multiple will expand as its deposit base increases and the company starts production in late 2022, the analyst said.
The firm models for free cash flow of $889 million in 2024 and $1.8 billion in 2025.
Tesla had free cash flow of $1.4 billion in its latest quarter, more than triple the $418 million it reported in the year-earlier period.
Fisker debuted through a SPAC reverse merger with Spartan Energy Acquisition on Oct. 30.
In a statement, Spartan Energy combination would give Fisker more than $1 billion of cash on its balance sheet, net of transaction fees and expenses.
Fisker has said that proceeds from the public listing would provide funding to bring its first product, the Fisker Ocean electric SUV, to production in late 2022.