One firm that is gaining a remarkable quantity of passion today is QuantumScape (NYSE: QS). Shares of this solid-state battery supplier have actually skyrocketed greater than 7% at the time of writing, on abnormally high volume. For financiers in QS stock, this move is a welcome reprieve from the or else negative rate activity seen over the past year.
Without a doubt, over the past one year, shares of QS stock have actually surrendered virtually 60% of their value.
Much of the view around solid-state batteries has moved dramatically over the past year. Why? Well, investors seem reducing their expectations regarding when this modern technology will certainly be viable. In other words, even supporters of the game-changing innovation that QuantumScape focuses on think that it might take some time.
Accordingly, expectations of future capital development are increasingly being pushed out right into more years, a reality that does not square well with increasing rate of interest.
Where Do Analysts Believe QS Stock Is Headed?
For recommendation, QS stock presently trades at $18.60.
– JPMorgan’s Jose Asumendi recently restated a “hold” rating on QS stock, with a cost target of $27 per share.
– Adam Jonas of Morgan Stanley additionally repeated an “equal weight” ranking, reducing his price target to $30 from $40 for QS stock.
– Finally, Baird analyst George Gianarikas preserved a “hold” score, with a $20 cost target on this stock.
Why QuantumScape Stock Unexpectedly Jumped Monday Mid-day
QuantumScape (QS 6.88%) stock soared higher by as long as 12.8% Monday afternoon before regulating to close the session up by 6.8%. The sudden jump in the stock price can be attributed to a write-up published by German business monthly Manager Magazin that fueled supposition about a potential collaboration between QuantumScape and a luxury vehicle maker.
QuantumScape is constructing multilayer solid-state lithium steel battery cells that are reportedly far better than the lithium-ion batteries that presently power most electric cars (EVs) on numerous matters, consisting of energy thickness, effectiveness, charging rate, cost, as well as safety.
A person using a cellphone while waiting to bill electric car.
Image resource: Getty Images.
According to the Supervisor Magazin write-up, Volkswagen’s (VWAGY 2.12%) luxury brand name Porsche, best known for its 911 sports car, is supposedly establishing an electrical variation of the 911 that could utilize solid-state batteries, as well as is collaborating with QuantumScape to supply them.
Although neither QuantumScape nor Porsche have actually verified anything yet, financiers were maybe banking on this report confirming true, offered the company’s long-lasting collaboration with Volkswagen.
In 2021, QuantumScape obtained an extra $100 million well worth of financing from Volkswagen after its battery cells satisfied the automaker’s technical turning point needs in laboratory tests. The two business have actually additionally authorized an agreement to collectively create a solid-state battery pilot-line center.
QuantumScape doesn’t anticipate to start business production of its batteries before 2024. Yet financiers have wagered large on the stock, and also the backing of Volkswagen creates a crucial part of the investment thesis for the EV battery start-up.