By Christiana Sciaudone
Investing.com — Fisker Inc (NYSE:) rose more than 4% after RBC Capital Markets initiated coverage on the stock with a buy-equivalent.
The analyst simultaneously slammed Lordstown Motors Corp (NASDAQ:), which just said it doesn’t have enough money to start commercial production, giving it a sell-equivalent rating.
The maker of battery electric vehicles has an attractive risk/reward profile, said analyst Joseph Spak, according to StreetInsider.
“Fisker plans to bring BEVs to the market in a differentiated way, utilizing 3rd-party BEV platforms and contract manufacturing,” Spak wrote.
That will leverage the billions of dollars the industry is pouring into the market.
“The easiest analogy to make is to Apple (NASDAQ:), which designs its products, but has contract manufacturers assemble/ produce them,” Spak wrote in a note. “Fisker has thus far partnered with Magna and Foxconn, which aside from saving money has also led to a faster time to market (first product Ocean SUV is slated for 4Q22). Because of this strategy, we see less risk than other BEV startups towards hitting SoP targets.”
The analyst set a price target of $27 per share.