One business that is gaining a tremendous quantity of rate of interest today is QuantumScape (NYSE: QS). Shares of this solid-state battery maker have skyrocketed greater than 7% at the time of composing, on abnormally high quantity. For financiers in QS stock, this action is a welcome reprieve from the or else negative rate activity seen over the past year.
Indeed, over the past 12 months, shares of QS stock have surrendered almost 60% of their worth.
Much of the sentiment around solid-state batteries has moved substantially over the past year. Why? Well, financiers appear to be lowering their assumptions as to when this modern technology will certainly be viable. Simply put, even supporters of the game-changing innovation that QuantumScape concentrates on think that it might take some time.
As necessary, assumptions of future capital growth are increasingly being pushed out right into additional years, a reality that does not square well with climbing rate of interest.
Where Do Analysts Assume QS Stock Is Headed?
For reference, QS stock currently trades at $18.60.
– JPMorgan’s Jose Asumendi recently stated a “hold” rating on QS stock, with a price target of $27 per share.
– Adam Jonas of Morgan Stanley also reiterated an “equal weight” score, lowering his cost target to $30 from $40 for QS stock.
– Ultimately, Baird expert George Gianarikas maintained a “hold” rating, with a $20 price target on this stock.
Why QuantumScape Stock Unexpectedly Jumped Monday Afternoon
QuantumScape (QS 6.88%) stock soared greater by as long as 12.8% Monday mid-day before moderating to shut the session up by 6.8%. The unexpected jump in the stock rate can be credited to a short article published by German business regular monthly Supervisor Magazin that sustained supposition concerning a potential partnership in between QuantumScape and also a deluxe vehicle manufacturer.
QuantumScape is building multilayer solid-state lithium steel battery cells that are supposedly better than the lithium-ion batteries that currently power most electric vehicles (EVs) on a number of counts, including power density, efficiency, billing rate, expense, and also safety and security.
An individual utilizing a smart phone while waiting to bill electrical cars and truck.
Picture source: Getty Images.
According to the Supervisor Magazin short article, Volkswagen’s (VWAGY 2.12%) high-end brand Porsche, best understood for its 911 cars, is supposedly developing an electrical variation of the 911 that might use solid-state batteries, and also is working with QuantumScape to supply them.
Although neither QuantumScape nor Porsche have confirmed anything yet, financiers were probably banking on this rumor confirming true, given the business’s long-lasting partnership with Volkswagen.
In 2021, QuantumScape got an additional $100 million worth of financing from Volkswagen after its battery cells satisfied the car manufacturer’s technological landmark needs in laboratory tests. The two companies have likewise signed an agreement to collectively create a solid-state battery pilot-line facility.
QuantumScape doesn’t anticipate to begin industrial manufacturing of its batteries prior to 2024. Yet investors have actually wagered huge on the stock, as well as the backing of Volkswagen develops an essential part of the financial investment thesis for the EV battery startup.