Morgan Stanley Downgrades QuantumScape (QS) to Equalweight Slamming the PT down 43%
- Nasdaq futures jump 2% after Microsoft's strong forecast; Fed decision looms
- 'Living up to the Legend': Microsoft (MSFT) Stock Recovers Earlier Losses as Analysts Boost Price Targets Despite Azure Growth Slowdown
- Buy Any Further Significant Pullback in Equities - Goldman Sachs
- Oil hits highest since 2014 on Russia-Ukraine tension
- Texas Instruments (TXN) Shares Surge on Beat-and-Raise, Analysts Positive
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
(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."
Shares of QuantumScape closed at $38.81 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: RBC Capital Double Downgrades Gatos Silver (GATO) to Underperform
- HSBC Holdings (HSBA:LN) (HSBC) PT Raised to HK$6.15 at Barclays
- UPDATE: Lockheed Martin (LMT) PT Raised to $450 at Morgan Stanley, Supply Issues Appear to be Behind the Company
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades, Hot Downgrades
Related EntitiesMorgan Stanley
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!