Morgan Stanley Storms Into the EV Space; Offers 2 shares to buy
We really live in interesting times – and in many ways it’s good. Take, for example, the automotive industry. Technology is changing at a rapid pace, and when it goes down, it will dramatically change the way we drive. By 2030, our concept of “car” will probably not be recognizable to drivers from 1
980. The biggest changes come from power systems and artificial intelligence. AI will bring autonomous technology to our cars, and make self-driving cars a reality. But the changes in the power systems will hit us first. In fact, electric vehicles are already on our roads, and electric vehicle companies (EVs) are expanding rapidly. At the moment, there are several paths to potential success in the EV market. Companies work to position themselves as leaders in battery technology or electric trains, or to maximize range and performance per charge. It is a fast-paced industry environment that provides both opportunity and excitement for investors. Smart investors will look for companies that are able to meet scaling requirements once they have settled on salable models. The investment company Morgan Stanley has followed the EV industry and looked for innovative new design and production companies that position themselves for gains as the market matures. The company’s car analyst, Adam Jonas, has selected two stocks that investors should seriously consider buying, and says “When we map the EV / battery’s start-up landscape, we prioritize highly differentiated technology and / or business models with a scale to a reasonable risk level.” we open the TipRanks database, we have retrieved the details of both Jonas selections to see if they can fit your portfolio well. Fisker (FSR) First Up, Fisker, is based in Southern California, the epicenter of so many of our pioneering Fisker’s focus is on solid-state battery technology, a growing alternative to the lithium-ion batteries that most electric cars depend on.While more expensive than older lithium-based systems, solid state batteries are safer and provide higher energy density Fisker has been keen to patent its features for solid state batteries, a good strategy to lock in its advances in this field.For electric cars, solid state batteries offer faster charging times, longer range per charge and potentially lower battery weight – all important factors in vehicle performance. Every car company needs a flagship model, and Fisker has Ocean – an EV SUV with a mid-price ($ 37,499) and a long-distance system (up to 300 miles). The car has a stylish design and room-mounted solar panels to complement the charging system, and is planned to start series production for the markets in 2022. The stylish design reflects the sensitivities of the company’s founder, Henrik Fisker, known for his work with BMW. Z8 and Aston Martin DB9. Fisker entered the public markets through a SPAC merger agreement last autumn. Since the completion of the SPAC transaction on October 29, the shares in FSR increased 112%. Impressed by this company, Morgan Stanley’s Jonas describes the “value proposition of Fisker” as “design, time to market, clean sheet user experience and management expertise,” and said that the 4Q22 launch plan for Ocean is likely to be fulfilled. . Fisker is especially aimed at the privately owned / passenger car business in contrast to commercially oriented end markets, where emotional design and user experience mean more. In addition, the company wants to create a completely digital experience from the website of the app for HMI in the car and continued customer engagement through the flexible rental product, Jonas added. In line with his positive views on the company (and the car), Jonas Fisker considers an overweight (ie buy), and sets a price target of $ 27 which indicates an upside of 42% for the coming year. (To view Jonas’ track record, click here. As for TipRanks data, we’ve found that Wall Street analysts have a number of views on Fisker. The stock has a consensus rating for Moderate Buy analysts, based on 7 reviews, including 4 purchases, 2 shares and 1 sale, shares are currently priced at $ 18.99, and the average price target of $ 21.20 implies a one-year upside of ~ 12%. (See FSR share analysis on TipRanks) QuantumScape (QS) There Fisker works with solid state batteries in connection with car production, QuantumScape establishes itself as a leader in EV battery technology and a potential supplier of the next generation of batteries and power systems for the EV market. QuantumScape designs and builds solid state lithium metal batteries, the highest energy density battery system that The main advantages of the technology are safety, longevity and charging time Solid state batteries are non-flammable, they last longer than lithium-ion batteries, with less capacity loss at the anode limit the cut; and their composition allows faster charging, in 15 minutes or less to reach 80% capacity. QuantumScape believes that these benefits will offset the technology’s current higher price, and create a new standard in EV power systems. The company’s strongest connection to the EV production field is the connection with Volkswagen. The German car giant invested $ 100 million in QuantumScape in 2018, and another $ 200 million in 2020. The two companies are using their partnership to prepare for mass-scale development and solid-state battery production. Like Fisker, QuantumScape went public through a SPAC agreement late last year. The agreement, which ended on November 27, put the QS ticker in the public markets – where it immediately rose above $ 130 per share. While the stock has been slipping since then, it is still up 47% from the NYSE opening. For Morgan Stanley’s Jonas, involvement in QS shares has 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 obstacle in battery science (energy density) which, if successful, can create extremely high value for a wide range of customers in the automotive industry and beyond. The risk of moving from a single layer cell to a production car is high, but we believe these are balanced by the commercial potential and role that Volkswagen has in helping to guarantee the early production ramp, “Jonas explained. Jonas considers QS to be a long-term stock, and considers the shares to be overweight ( ie purchase), and his $ 70 price target indicates confidence of an upside of 28% for a one-year time horizon.Given, not everyone is as enthusiastic about QS as Morgan Stanly.QSs Hold consensus rating is based on an even distribution between The shares are priced at $ 54.64, and their recent strengthening has pushed them well above the average price target of $ 46.67. (See QS stock analysis on TipRanks) To find great ideas for EV stocks so m shopping for attractive valuations, you can go to TipRanks ‘Best Aks to Buy, a recently launched tool that unites all TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the analyst presented. The content is for informational purposes only. It is very important to do your own analysis before making an investment.