One firm that is getting an incredible quantity of rate of interest today is QuantumScape (NYSE: QS). Shares of this solid-state battery maker have actually skyrocketed more than 7% at the time of writing, on unusually high volume. For capitalists in qs stock price today, this move is a welcome respite from the or else adverse rate action seen over the past year.
Undoubtedly, over the past one year, shares of QS stock have actually given up almost 60% of their value.
Much of the view around solid-state batteries has actually shifted significantly over the past year. Why? Well, financiers appear to be decreasing their assumptions regarding when this technology will be feasible. Simply put, even supporters of the game-changing modern technology that QuantumScape specializes in think that it might take some time.
Accordingly, assumptions of future cash flow growth are progressively being pushed out into more years, a reality that doesn’t square well with increasing interest rates.
Where Do Analysts Think QS Stock Is Headed?
For reference, QS stock currently trades at $18.60.
– JPMorgan’s Jose Asumendi just recently stated a “hold” rating on QS stock, with a cost target of $27 per share.
– Adam Jonas of Morgan Stanley also stated an “equal weight” ranking, lowering his rate target to $30 from $40 for QS stock.
– Lastly, Baird analyst George Gianarikas maintained a “hold” score, with a $20 price target on this stock.
Why QuantumScape Stock Suddenly Jumped Monday Mid-day
QuantumScape (QS 6.88%) stock soared higher by as long as 12.8% Monday afternoon prior to moderating to close the session up by 6.8%. The abrupt enter the stock price can be attributed to a short article published by German business monthly Supervisor Magazin that fueled supposition concerning a prospective partnership between QuantumScape as well as a luxury vehicle manufacturer.
QuantumScape is developing multilayer solid-state lithium steel battery cells that are supposedly better than the lithium-ion batteries that currently power most electric lorries (EVs) on several matters, including power thickness, effectiveness, billing speed, cost, as well as safety.
An individual making use of a cellphone while waiting to charge electrical auto.
Image resource: Getty Images.
According to the Supervisor Magazin article, Volkswagen’s (VWAGY 2.12%) deluxe brand Porsche, best understood for its 911 cars, is reportedly developing an electrical variation of the 911 that might use solid-state batteries, as well as is dealing with QuantumScape to provide them.
Although neither QuantumScape neither Porsche have validated anything yet, financiers were probably betting on this report proving true, provided the firm’s long-standing collaboration with Volkswagen.
In 2021, QuantumScape received an extra $100 million well worth of funding from Volkswagen after its battery cells met the car manufacturer’s technological landmark requirements in lab tests. The two firms have additionally authorized an arrangement to jointly create a solid-state battery pilot-line center.
QuantumScape does not expect to start industrial production of its batteries prior to 2024. Yet capitalists have bet huge on the stock, and also the support of Volkswagen develops a key part of the investment thesis for the EV battery startup.