On Tuesday morning, Fisker Inc. (NYSE:FSR) shares spiked more than 27% after Morgan Stanley analysts issued an upbeat update on production expectations. Fisker stock traded at about $18.06 per share after easing gains just before midday.
Analyst Adam Jonas retains a high FSR price target of $90.00 per share and a base target of $40.00.
In a note to investors, Morgan Stanley wrote:
We believe FSR may be one of the only EV-related startups to launch on time and ramp efficaciously in late 2022.
The analyst also expects Fisker to deliver at least 4,000 EV units in the fiscal year 2022 and more than 45,000 in 2023, resulting in the stock’s highly attractive risk-reward skew of up to more than 500% upside potential.
Should you invest in Fisker shares in August 2021?
Investors in EV startups look at the company’s ability to deliver according to production predictions. Therefore, any bottlenecks that could potentially delay the production process can affect the stock price significantly.
Based on the latest analyst reports, it seems Fisker is on course to meet production targets, with a significant spike in deliveries coming in 2023. Therefore, as more investors grow in confidence in Fisker’s ability to meet production targets, the stock price will rise.
As such, it may not be too late to buy even after Tuesday’s sharp spike.
Technical overview: Fisker stock price predictions for Q3 2021
Technically, Fisker shares appear to have rallied closer to overbought conditions after Tuesday’s spike. However, there is still room left to run, meaning the upward movement could continue further. In addition, the stock also surged to trade above the 100-day moving average in the intraday chart but is yet to reach last month’s highs.
Therefore, investors can target extended gains at approximately $20.32 or higher at $23.26. On the other hand, if the price pulls back further, it could find support at $15.17 or lower at $12.64.
Bottom line: the case for buying Fisker shares now
In summary, although Fisker shares spiked significantly on Tuesday, the stock eased later in the day to trim the session gains. In addition, the FSR stock is yet to retest its July highs, leaving room for more upward movement.
Therefore, it could be the perfect time to buy FSR shares ahead of an exciting period in the next few years.
The post As Morgan Stanley issues an upbeat update on Fisker, is it time to buy FSR shares? appeared first on Invezz.
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Motiur Rahman
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