UPDATE: SMBC Nikko Securities Starts QuantumScape (QS) at Neutral
- S&P 500 ends down as jobs data rekindles rate hike fear
- U.S. Adds 528,000 Jobs in July, Topping Estimates
- Berkshire Hathaway (BRK-A) (BRK-B) Posts Strong Operating Results Even As Buyback, Equity Buying Slows
- Amazon (AMZN) to Buy iRobot (IRBT) for $1.7 Billion
- Block (SQ) Stock Falls Despite Earnings Beat, Analysts Remain Positive
SMBC Nikko Securities analyst Srini Pajjuri initiates coverage on QuantumScape (NYSE: QS) with a Neutral rating and a price target of $20.00.
The analyst comments "QuantumScape is developing solid-state battery technology, which has the potential to disrupt the $170b EV battery market by cutting charging times in half, increasing energy density by 80% (range), and lowering costs. The company has shown considerable progress toward mass production and is backed by major OEMs including Volkswagen. Balance sheet is healthy and near-term target milestones appear reasonable. On the other hand, meaningful revenue is several years away and execution risk is high. In addition, ongoing improvements in traditional battery costs/performance could lessen the attractiveness of QS's batteries by the time the company achieves volume production. At 3.2x CY27 EV/S, valuation is at a premium to traditional battery makers and a discount to high-growth EV makers. We see limited near term catalysts and initiate at Neutral and $20 target."
Shares of QuantumScape closed at $17.29 yesterday.
You May Also Be Interested In
- Western Digital (WDC) Outlook 'Uglier Than Expected'
- StarHub Ltd. (STH:SP) (SRHBY) PT Raised to SGD1.35 at Credit Suisse
- Studio Dragon (253450:KS) PT Raised to KRW114,000 at Credit Suisse
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
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!