UPDATE: SMBC Nikko Securities Starts QuantumScape (QS) at Neutral

(Updated - March 28, 2022 4:13 PM EDT)

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."

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 $17.29 yesterday.

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