One firm that is acquiring a remarkable amount of passion today is QuantumScape (NYSE: QS). Shares of this solid-state battery producer have actually soared more than 7% at the time of creating, on unusually high volume. For investors in QS stock, this step is a welcome reprieve from the otherwise unfavorable cost activity seen over the past year.
Undoubtedly, over the past 12 months, shares of QS stock have actually surrendered nearly 60% of their worth.
Much of the belief around solid-state batteries has changed considerably over the past year. Why? Well, capitalists appear to be lowering their assumptions regarding when this modern technology will be viable. In other words, even fans of the game-changing modern technology that QuantumScape specializes in think that it may require time.
As necessary, expectations of future cash flow development are progressively being pushed out right into more years, a fact that does not square well with rising interest rates.
Where Do Analysts Assume QS Stock Is Headed?
For recommendation, QS stock currently trades at $18.60.
– JPMorgan’s Jose Asumendi lately stated a “hold” rating on QS stock, with a price target of $27 per share.
– Adam Jonas of Morgan Stanley additionally repeated an “equal weight” ranking, decreasing his price target to $30 from $40 for QS stock.
– Ultimately, Baird analyst George Gianarikas maintained a “hold” score, with a $20 rate target on this stock.
Why QuantumScape Stock Unexpectedly Leapt Monday Afternoon
QuantumScape (QS 6.88%) stock rocketed greater by as long as 12.8% Monday afternoon before moderating to close the session up by 6.8%. The unexpected jump in the stock price can be credited to an article released by German service monthly Manager Magazin that sustained supposition regarding a possible collaboration between QuantumScape and a high-end cars and truck maker.
QuantumScape is building multilayer solid-state lithium metal battery cells that are supposedly much better than the lithium-ion batteries that presently power most electric automobiles (EVs) on several counts, consisting of power density, effectiveness, billing rate, price, as well as safety and security.
An individual using a mobile phone while waiting to bill electric vehicle.
Image source: Getty Images.
According to the Manager Magazin article, Volkswagen’s (VWAGY 2.12%) luxury brand name Porsche, best known for its 911 cars, is apparently creating an electrical variation of the 911 that might make use of solid-state batteries, as well as is collaborating with QuantumScape to provide them.
Although neither QuantumScape neither Porsche have validated anything yet, investors were maybe banking on this rumor proving real, provided the business’s long-lasting collaboration with Volkswagen.
In 2021, QuantumScape got an additional $100 million worth of funding from Volkswagen after its battery cells fulfilled the automaker’s technological landmark needs in lab tests. Both companies have actually also authorized an arrangement to jointly create a solid-state battery pilot-line center.
QuantumScape does not anticipate to begin commercial manufacturing of its batteries prior to 2024. Yet financiers have actually bet huge on the stock, as well as the support of Volkswagen creates an essential part of the investment thesis for the EV battery startup.