One company that is obtaining a tremendous quantity of interest today is QuantumScape (NYSE: QS). Shares of this solid-state battery producer have risen more than 7% at the time of composing, on uncommonly high quantity. For investors in qs stock price today, this move is a welcome respite from the otherwise unfavorable price activity seen over the past year.
Without a doubt, over the past 12 months, shares of QS stock have surrendered nearly 60% of their worth.
Much of the belief around solid-state batteries has moved considerably over the past year. Why? Well, capitalists seem lowering their assumptions as to when this modern technology will certainly be feasible. In other words, even advocates of the game-changing modern technology that QuantumScape focuses on think that it may take some time.
As necessary, assumptions of future cash flow development are significantly being pushed out into further years, a truth that doesn’t square well with climbing rate of interest.
Where Do Experts Assume QS Stock Is Headed?
For recommendation, QS stock currently trades at $18.60.
– JPMorgan’s Jose Asumendi lately restated a “hold” ranking on QS stock, with a rate target of $27 per share.
– Adam Jonas of Morgan Stanley likewise repeated an “equivalent weight” rating, lowering his rate target to $30 from $40 for QS stock.
– Lastly, Baird expert George Gianarikas kept a “hold” ranking, with a $20 price target on this stock.
Why QuantumScape Stock Unexpectedly Jumped Monday Mid-day
QuantumScape (QS 6.88%) stock soared higher by as high as 12.8% Monday afternoon before moderating to shut the session up by 6.8%. The sudden enter the stock cost can be credited to a post published by German organization regular monthly Supervisor Magazin that fueled supposition regarding a potential partnership between QuantumScape as well as a high-end vehicle 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 a number of matters, including energy density, performance, charging speed, cost, and also safety and security.
A person using a smart phone while waiting to charge electrical automobile.
Photo source: Getty Images.
According to the Manager Magazin write-up, Volkswagen’s (VWAGY 2.12%) deluxe brand Porsche, best known for its 911 cars, is supposedly creating an electric variation of the 911 that might use solid-state batteries, and is collaborating with QuantumScape to supply them.
Although neither QuantumScape nor Porsche have actually validated anything yet, investors were perhaps betting on this report verifying true, given the company’s long-standing partnership with Volkswagen.
In 2021, QuantumScape obtained an additional $100 million well worth of financing from Volkswagen after its battery cells fulfilled the car manufacturer’s technological landmark demands in lab examinations. The two firms have actually likewise signed an arrangement to jointly establish a solid-state battery pilot-line facility.
QuantumScape does not expect to start business manufacturing of its batteries prior to 2024. Yet investors have actually bet big on the stock, and the backing of Volkswagen creates a vital part of the investment thesis for the EV battery startup.