The share price of electric vehicle firm Fisker (NYSE: FSR) is rallying premarket on Tuesday after Morgan Stanley resumed coverage on the stock.
Morgan Stanley resumed coverage of Fisker with an Overweight rating following the company's Q2 report.
It reported a cash balance of $962 million as of June 30 and stated that the Fisker Ocean development remains on track for the expected November 12, 2022, start of production.
Fisker expects production volume to reach over 5,000 units per month during 2023. Its net loss for Q2 totalled $46.2 million, or $0.16 per share.
Morgan Stanley analyst Adam Jonas continues to recommend Fisker as the “highest-rated de-SPAC EV startup,” stating that Fisker is “one of the only EV-related startups to actually launch on time.”
Jonas expects the Ocean production to “ramp efficaciously” in late 2022 when he believes EV demand will exceed supply.
In his note, Jonas set a $40 price target for the stock, but has a $90 bull case target for the shares.
Fisker shares are up 15.44% premarket at $17.35, adding to Monday's 3% gain.
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