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Morgan Stanley storms into the EV space; Offering 2 stocks to buy
We’re really living in exciting times – and in many ways, that’s a good thing. Take the car industry, for example. Technology is changing at a rapid pace, and when it settles, it will dramatically change the way we drive. In 2030, our concept of a ‘car’ is unlikely to be known to drivers since 1980. The biggest changes are coming from power systems and artificial intelligence. AI will bring autonomous technology to our cars, producing self-driving vehicles. But the changes in power systems will hit us first. Of course, electric propulsion vehicles are already on our roads, and electric vehicle (EV) companies are growing rapidly. For now, there are several avenues to potential success in the EV market. Companies are working to position themselves as leaders in battery technology, or electric power trains, or to increase the range and performance for all costs. It is a world-class business environment, offering both opportunity and happiness to investors. Wise investors look for companies that are able to meet scaling demands, once they have settled on marketing models. Investment firm Morgan Stanley has been overseeing the EV industry, looking for innovative design and production companies that position themselves for benefits as the market matures. The company’s automated analyst, Adam Jonas, has selected two stocks on which investors should seriously consider buying-in, saying “How we examine the EV / startup landscape battery, we prioritize different technology and / or business models with a path to scale at its reasonable level of risk. ”Opening the TipRanks database, we’ve taken a look at Jonas’ two options to see if they might be a good fit for your portfolio. Fisker (FSR) First, Fisker, based in Southern California, is the core of many of our technical industries. Fisker’s focus is on solid-state battery technology, a growing alternative to the lithium-ion batteries on which most EVs rely. Although more expensive than older lithium-based systems, solid state batteries are safer and offer higher energy densities. Fisker has been busy patenting its transitions to solid-state batteries, a robust strategy for locking up its advances in this area. For EVs, solid-state batteries offer faster charge times, longer range for all charges, and potentially lower battery weight – all important features in vehicle performance. Every car company needs a flagship model, and the Fisker Ocean – EV SUV has a mid-range price ($ 37,499) and a long-range power system (up to 300 miles). The vehicle has elegant design and space-mounted solar panels to add to the charging system, and it is planned to enter serial production for the markets in 2022. The elegant design expressed the feelings of the company’s founder, Henrik Fisker, who is known for his work on BMW Z8 and the Aston Martin DB9. Fisker entered the public markets through the SPAC union agreement last fall. Since concluding the SPAC transaction on October 29, shares in FSR are up 112%. Jonas Morgan Stanley likes this company, describing Fisker ‘s’ offer value’ as “design, time for marketing, clean page user experience and management knowledge,” and says that that the 4Q22 launch schedule for the Ocean be met. “Fisker is particularly focused on the personal / passenger car industry rather than commercial end markets, where emotional design and customer experience are more important. In addition, the company wants to create an all-digital experience from the website to the app to HMI in the car and ongoing communication with customers through their flexible rental product, ”said Jonas. Based on his positive outlook on the company (and the car), Jonas considers Fisker the Overweight (ie Buy), and sets a $ 27 price target suggesting an upside of 42% for the next year. (To view Jonas’ s history, click here) Turning to TipRanks data, we’ve found that Wall Street analysts hold different views on Fisker. The stock has a Moderate Buy analyst consensus rating, based on 7 reviews, including 4 Buys, 2 Holds, and 1 Sell. Shares are currently priced at $ 18.99, and the average price target of $ 21.20 means a year overhead of ~ 12%. (See FSR stock analysis on TipRanks) QuantumScape (QS) Where Fisker works on solid-state batteries in the context of vehicle production, QuantumScape positions itself as a leader in EV battery technology and a potential supplier of the next generation of battery and power systems for EV market. QuantumScape designs and builds solid-state lithium-metal batteries, the highest energy density battery system currently available. The main advantages of the technology are safety, longevity and cost times. Solid-state batteries are non-flammable; they last longer than lithium-ion batteries, with less capacity loss at the anode interface; and the combination allows a faster charge, of 15 minutes or less, to reach 80% capacity. QuantumScape promises that these benefits will outweigh the higher cost of the current technology, and will create a new standard in EV power systems. The company’s strongest connection to the EV production range is its connection to Volkswagen. German automotive giant invested $ 100 million in QuantumScape in 2018, and an additional $ 200 million in 2020. Both companies are using their partnership to prepare for large-scale development and production solid-state batteries. Like Fisker, QuantumScape went public through an SPAC agreement at the end of last year. The deal, which closed on Nov. 27, put the QS ticker in the public markets – where it was sharply above $ 130 per share. Although the stock has declined since then, it is still up 47% since it opened NYSE. For Jonas Morgan Stanley, participation in QS stock comes with a high risk, but also a high potential reward. In fact, the analyst calls it, “The Biotech of Battery Development.” “We believe their solid state technology addresses a major barrier in battery science (energy density) that, if successful, can create very high value for a wide range of customers in the automated industry and beyond.The dangers of moving from a single fold cell to production car are high, but we believe these are balanced by the commercial potential and space Volkswagen to help subscribe to the early manufacturing ramp, “Jonas explained. Noting that QS is a stock for the long haul, Jonas appreciates the fat (i.e. Buy) shares, and his $ 70 price target shows confidence in it. up above 28% for a one-year horizon. By permission, not everyone is as enthusiastic about QS as Morgan Stanly. QS Hold consensus rankings are based on a fair split between Buy, Hold, and Sell reviews. Shares are priced at $ 54.64 and have recently been pushed well above the average price target of $ 46.67. (See QS stock analysis on TipRanks) To find great ideas for trading EV stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a recently launched tool that unites its -all TipRanks fairness view. Disclaimer: The views expressed in this article are those of the emerging analyst. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.