Morgan Stanley Downgrades QuantumScape (QS) to Equalweight Slamming the PT down 43%

November 15, 2021 6:52 PM EST
Get Alerts QS Hot Sheet
Price: $11.43 --0%

Rating Summary:
    1 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 1 | Down: 8 | New: 4
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(Updated - November 16, 2021 7:31 AM EST)

Morgan Stanley analyst Adam Jonas downgraded QuantumScape (NYSE: QS) from Overweight to Equalweight with a new price target of $40.00, down from $70.00. The downgrade is based on the belief that by the time QS achieves commercial production at scale in FY25, the industry will have achieved significant improvement in battery efficiency and cost that could diminish the value of the technological ‘leap’ to solid state.

The analyst stated "Since our February initiation, the pace of capital investment in the global battery space has accelerated materially. Beyond excess investment, our views of 1) 'balkanization' of the battery business along geopolitical/national security lines, 2) OEM vertical integration, and 3) technology change/obsolescence risk on the way to cell and manufacturing breakthroughs points to risks that could lead to battery commoditization and deflation to levels far below current economic models."

For an analyst ratings summary and ratings history on QuantumScape click here. For more ratings news on QuantumScape click here.

Shares of QuantumScape closed at $38.81 yesterday.

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