In the pre-market trading session, Fisker Inc. (FSR) stock soared by 3.48% to the price of $13.38 at the time of writing. FSR stock jumped up to the price of $12.93 which is a 4.53% gain at its previous closed session. The FSR stock volume traded at 82.97 million shares. While the average volume of FSR shares is 18.66M for the past 3 months.
Fisker Inc.’s operational background
Fisker Inc. is an automotive company that focuses on developing and manufacturing one of the most luxurious and electric vehicles in the world as well as provide mobility solutions. The company’s headquarters is in Manhattan Beach, California. In the automotive industries, the company markets its automobiles as one of the most emotionally desirable cars that are also eco-friendly in their built. FSR stock focuses on the company’s vision of being driven to create a clean and sustainable future for everyone. Fisker Inc. also aims to become the number one e-mobility service provider in the automotive parts market and industry with its eco-friendly cars.
FSR stock surge and BofA’s “Buy” rating
Fisker Inc. has been seeing a surge in its stock performance and value since yesterday. This happened because the Bank of America announced on 20th April 21, 2021, that it is initiating coverage for the analysis of the Fisker stock and has given a new rating of “Buy” for the stock- which led to the stock’s outperformance.
BofA analysis behind the “Buy” rating
Bank of America has an AutoTech entrant/SPAC analysis in which it has 10 criteria outlined. The automotive company that covers the majority of the criteria will gain a positive or “Buy” rating from the company. This is what happened with Fisker stock for which the BofA announced +6 out of the 10 requirements being met. BofA’s analyst John Murphy has given the stock a price target of $31. The company is in a competitively strong position due to its attractive offerings and has a very integrative platform for future expansion and partnerships. BofA believes specifically that FiskerInc has certain aspects like its go-to-market as well as the commercialization strategy which can be credited for having merits while at the same time the product offering is very compelling.
On 30th March, FiskerInc participated in the Bank of America 2021 Virtual Global Automotive Summit. Henrik Fisker who is the chairman and chief executive officer of Fisker Inc. himself participated in the summit in its “Fireside Chat” program. He provided the audience update on the Fisker Ocean and Project PEAR. This participation in the Summit does suggest a hint that the works of BofA’s stock rating coverage may have been motivated after this summit and the CEO’s updates.
What investors need to keep in mind about the Electric Vehicle industry
However we need to realize that the EV market is becoming very concentrated and competitive, so the penetration becomes tough. However, that does not negate the volume growth seen in the electric vehicle industry. Companies that enter into this market are witnessing that the market has a Compound Annual Growth of +30%.