One company that is acquiring a remarkable quantity of interest today is QuantumScape (NYSE: QS). Shares of this solid-state battery producer have skyrocketed greater than 7% at the time of writing, on abnormally high quantity. For financiers in quantumscape qs stock, this relocation is a welcome reprieve from the or else negative price action seen over the past year.
Indeed, over the past one year, shares of QS stock have surrendered almost 60% of their worth.
Much of the sentiment around solid-state batteries has changed drastically over the past year. Why? Well, financiers seem reducing their assumptions as to when this technology will be practical. To put it simply, even supporters of the game-changing modern technology that QuantumScape concentrates on think that it might take time.
Accordingly, assumptions of future cash flow growth are increasingly being pushed out into additional years, a truth that doesn’t square well with increasing rates of interest.
Where Do Experts Think QS Stock Is Headed?
For reference, QS stock currently trades at $18.60.
– JPMorgan’s Jose Asumendi lately stated a “hold” rating on QS stock, with a rate target of $27 per share.
– Adam Jonas of Morgan Stanley also restated an “equal weight” rating, reducing his rate target to $30 from $40 for QS stock.
– Finally, Baird analyst George Gianarikas preserved a “hold” ranking, with a $20 cost target on this stock.
Why QuantumScape Stock All Of A Sudden Leapt Monday Afternoon
QuantumScape (QS 6.88%) stock rocketed greater by as long as 12.8% Monday afternoon before regulating to shut the session up by 6.8%. The sudden enter the stock rate can be attributed to an article released by German business monthly Supervisor Magazin that fueled supposition about a potential partnership between QuantumScape as well as a deluxe automobile maker.
QuantumScape is building multilayer solid-state lithium steel battery cells that are supposedly much better than the lithium-ion batteries that presently power most electric automobiles (EVs) on numerous matters, including power density, efficiency, billing rate, price, and security.
An individual utilizing a smart phone while waiting to charge electrical car.
Photo source: Getty Images.
According to the Manager Magazin short article, Volkswagen’s (VWAGY 2.12%) deluxe brand Porsche, best understood for its 911 cars, is apparently creating an electric version of the 911 that can utilize solid-state batteries, as well as is dealing with QuantumScape to supply them.
Although neither QuantumScape nor Porsche have verified anything yet, financiers were maybe banking on this rumor confirming real, offered the business’s long-lasting collaboration with Volkswagen.
In 2021, QuantumScape obtained an added $100 million worth of financing from Volkswagen after its battery cells met the car manufacturer’s technical milestone demands in lab tests. The two companies have also signed an agreement to collectively create a solid-state battery pilot-line center.
QuantumScape doesn’t anticipate to begin business manufacturing of its batteries before 2024. Yet capitalists have wagered large on the stock, and the backing of Volkswagen forms a key part of the investment thesis for the EV battery startup.