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Morgan Stanley storms into EV space; Offer 2 shares to buy
We are indeed living in interesting times – and in many ways that is a good thing. Take the automotive industry, for example. Technology is changing fast, and as it declines, it will dramatically change the way we drive. By 2030, our concept of ‘car’ is likely to be unrecognizable to drivers from 1980. The biggest changes come from power systems and artificial intelligence. AI will bring automated technology to our cars and make self-driving vehicles a reality. But the changes in power systems will hit us first. In fact, there are already electric drives on our roads, and companies with electric vehicles are increasing rapidly. Currently, there are several paths to potential success in the EV market. Companies are positioning themselves as leaders in the field of battery technology, or electric power trains, or to maximize their range and performance per charge. It is an industry environment in the industry that offers investors the opportunity and also offers excitement. Smart investors will look for companies that are able to meet scale requirements once they have decided on marketable models. Investment firm Morgan Stanley has been keeping an eye on the EV industry, looking for innovative new design and manufacturing companies to position their profit margins as the market matures. The firm’s automotive analyst, Adam Jonas, has selected two stocks that investors should seriously consider buying, saying: “As we explore the EV / battery startup landscape, we give priority to highly differentiated technology and / or business models with a scale by a reasonable level of risk. ”By accessing the TipRanks database, we’ve pulled out the details of both Jonas’ choices to see if they fit your portfolio well. Fisker (FSR) Fisker, first and foremost Based in Southern California, the centerpiece of so many of our cutting-edge technology industries, Fisker’s focus is on solid-battery technology, a growing alternative to the lithium-ion batteries on which most EVs depend. is like the older lithium-based systems, solid state batteries are safer and offer higher energy densities.Fisher was patenting his moves in solid state batteries, a great strategy to keep his progress in this area. d-batteries offer faster charging times, longer range per charge and potentially lower battery weight – all important factors in vehicle performance for cars. Every car business needs a flagship model, and Fisker has the Ocean – a mid-priced EV SUV ($ 37,499) and a long-range power system (up to 300 miles). The vehicle has a stylish design and chamber-mounted solar panels to complement the charging system, and is scheduled to enter series production for the markets in 2022. The stylish design reflects the sensitivity of the company’s founder, Henrik Fisker, known for his work on the BMW Z8 and the Aston Martin DB9. Fisker entered public markets last fall through a SPAC merger agreement. Since the SPAC transaction was completed on October 29, the shares in FSR have risen by 112%. Morgan Stanley’s Jonas is impressed with this company and describes Fisker’s ‘value proposition’ as ‘… design, time to market, user experience and management expertise’, and says the launch schedule for the 4Q22 Ocean is likely to be met word. . “Fisker is specifically focused on the business of personal ownership / passenger cars, as opposed to commercially oriented end markets, where emotional design and user experience are more important. In addition, the company wants to create a complete digital experience from the website to the app for the HMI in the car and have continued customer engagement through its flexible rental product, ‘Jonas added. Consistent with his optimistic outlook on the company (and the car), Jonas Fisker rates an overweight (ie buy), and sets a price target of $ 27, indicating that it has a 42% lead for the coming year will be. (To view Jonas’ record, click here. As for the TipRanks data, we found that Wall Street analysts have a variety of views on Fisker. The stock has a consensus rating of moderate buy analysts, based on 7 reviews, including 4 buy, 2 invest and sell 1. Shares are currently priced at $ 18.99, and the average price target of $ 21.20 implies an upward one-year of ~ 12%. (See FSR stock analysis on TipRanks) QuantumScape ( QS) Where Fisker deals with solid-state batteries in the context of vehicle production, QuantumScape presents itself as a leader in EV battery technology and a potential supplier of next-generation battery and power systems to the EV market. QuantumScape designs and builds solid lithium metal batteries, the highest battery system currently available The main advantages of the technology are safety, longevity and charging time Solid state batteries are not flammable, they last longer than lithium ion batteries, with less k loss of capacity at the anode interface; and its composition allows faster loading, from 15 minutes or less, to 80% capacity. QuantumScape bets that these benefits will outweigh the current higher costs of the technology and create a new standard in EV power systems. The commitment to the EV production field is the strongest bond with Volkswagen. The German car giant poured $ 100 million into QuantumScape in 2018, and an additional $ 200 million into 2020. The two companies are using their partnership to prepare for the development and production of massive batteries on a large scale. Like Fisker, QuantumScape was announced at the end of last year by a SPAC agreement. The deal, signed on November 27, put the QS check in the public markets – where it immediately rose above $ 130 a share. While the stock has slipped since then, it remains 47% higher than the opening in NYSE. For Morgan Stanley’s Jonas, involvement in QS stocks carries a high risk, but also a high potential reward. In fact, the analyst calls it ‘The Biotech of Battery Development’. “We believe that their solid state technology addresses a major obstacle in battery science (energy density) which, if successful, could create exceptionally high value for a wide range of customers in the automotive industry and beyond. The risks of a “Moving a single layer of diesel to a production engine is high, but we think it’s balanced by the commercial potential and the role of Volkswagen in helping to underpin the early production ramp,” Jonas explained. the long term is, Jonas rates the stock an overweight (ie buy), and its $ 70 price target indicates confidence in a 28% rise for a year horizon.Admittedly, not everyone is as enthusiastic about QS as Morgan Stanly The QS consensus rating is based on an equal split between buy, hold and sell ratings, priced at $ 54.64 and its recent valuation has pushed them well above the $ 46.67 target (see QS-a stock analysis on TipRanks.) To find great ideas for EV stocks that are trading at attractive valuations, visit TipRanks’ best stocks to buy, a newly introduced tool that unites all TipRanks stocks. Disclaimer: The opinions expressed in this article are those of the proposed analyst. The content is for informational purposes only. 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