Skip to main content

Fisker Initiated Buy on EV Sales-Volume Potential

Fisker shares rose after Bank of America initiated coverage of the electric-vehicle producer with a buy rating and $31 price target.
  • Author:
  • Publish date:

Shares of Fisker  (FSR) - Get Fisker Inc Class A Report moved up Tuesday after analysts at Bank of America initiated coverage of the electric-vehicle startup with a buy rating and $31 price target. 

Fisker shares at last check were 5.1% higher at $13.

In a note about the "fiercely competitive" EV industry, analyst John Murphy says that it is "without question that the advent of electric vehicles has arrived." 

While penetration for EVs globally will be slow over the next decade, it will still translate into significant volume growth in absolute terms from a low base. 

This is more of an opportunity of EV-centric automakers like Fisker, Lordstown Motors  (RIDE) - Get Lordstown Motors Corp. Class A Report and Canoo  (GOEV) - Get Canoo Inc. Class A Report, according to Murphy. 

Scroll to Continue

TheStreet Recommends

The firm also initiated coverage of Lordstown with a neutral rating and $13 price target. Lordstown shares dropped 4.1% to $8.83 at last check. 

Murphy sees Lordstown's underlying technology as less of a differentiating factor versus competitors, although its niche target market of trucks, vans and SUVs for fleet customers makes sense. 

The analyst initiated Canoo with an underperform rating and $6 price target. He said the company's business model is increasingly in flux with several pivots and changes recently announced. 

Canoo shares were down 8.5% to $7.58. 

Fisker recently told TheStreet's founder, Jim Cramer, on "Mad Money" that his company is looking not only to reinvent the car but also how cars are purchased, 

He said younger people don't want to take out huge auto loans or lock themselves into multiyear leases. So Fisker will offer flexible leases where buyers can return their vehicles any time they want.