UPDATE: Needham & Company Assumes Fisker (FSR) at Buy
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Needham & Company analyst Vikram Bagri assumes coverage on Fisker (NYSE: FSR) with a Buy rating, PT $12.
The analyst comments "We are initiating coverage on Fisker (FSR) with a Buy rating and $12 PT. FSR is entering the EV market with SUVs that feature cutting edge technology at an affordable price, which opens a vast opportunity set for the company. Moreover, FSR aims to achieve a dominant position without significant capital outlays through contract manufacturing agreements with the largest & most reputed companies. The Ocean, FSR's first SUV, will be assembled by Magna, who is the 4th largest supplier to automotive industry with experience building 3.7mm vehicles. This not only reduces execution risk and time to market but also means higher margins early on in the cycle. FSR's business model and skateboard design should allow it to launch more models sooner and gain market share. Despite these positive attributes, Fisker trades at a discount to its peers."
Shares of Fisker closed at $8.88 yesterday.
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