Evercore Bullish on Fisker

On November 30th, Evercore ISI analyst initiated an Outperform rating and a 12-month price objective of $15/share.

First up on the list of Evercore picks is Fisker, the US electric car firm started by Henrik Fisker, who built his reputation designing luxury vehicles for BMW. The Fisker company started production of its first model, the Fisker Ocean, in November of last year, has affirmed plans to produce over 42,000 of the vehicles this year. This production will go towards meeting the more than 63,000 reservations the company has on the Ocean. In addition, also this past November, Fisker introduced the drivable prototype of its second vehicle model, the PEAR. As of October 31 last year, the company had taken 5,000 reservations on the PEAR.

While these developments – the start of production, high rates of reservation, and a second model prototype – all bode well for the company, Fisker remains a speculative investment. The company is still essentially pre-revenue, and will remain so until it begins large-scale vehicle deliveries.

That said, Fisker’s progress toward those deliveries has been strong. The company has a detailed production plan for the Ocean, and is prepping assembly plants in Ohio, Georgia, and India. Ramping up industrial assembly plants is not cheap – but Fisker had cash and liquid assets of $824.7 million as of September 30, 2022 – the end of the last period reported. This cash holding can be weighed against non-GAAP operating expenses, for the full-year 2022, in the range of $435 million to $500 million.

Covering the stock for Evercore, analyst Chris McNally believes FSR presents a compelling risk-reward. McNally rates the stock an Outperform (i.e. Buy) along with a $15 price target that implies ~112% one-year upside.

Is Georgia something new or fake news? “….prepping assembly plants in Ohio, Georgia, and India…”

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Posted by: @kitaz

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Is Georgia something new or fake news? “….prepping assembly plants in Ohio, Georgia, and India…”

Free advice is worth every penny. 

Likely an error. Author/analyst probably confused Fisker with Rivian. Never heard about Georgia as it relates to Fisker.