Fisker (NYSE:FSR) has seen a positive month of trading, gaining over 20%. Fisker initially peaked investor interests early last year, after the company announced its intentions to merge with Spartan Energy Acquisition (SPAQ). In addition, the merger was one of the most talked about SPAC propositions in 2020. Fisker Inc. engages in the production of electric powered vehicles and was founded by Henrik Fisker and Geeta Gupta-Fisker. Since the completion of the merger, analysts have remained bullish on FSR stock. Analysts such as Morgan Stanley suggest the stock could reach $27 in the next 12 months. This article will breakdown everything you need to know about the Fisker stock forecast for 2022.
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Analysts remain bullish on Fisker’s stock forecast for 2022
Firstly, across the board of 9 Wallstreet analysts the average 12 month price target is set at $22.14 a share. This suggests an upside potential of 22% according to the consensus amongst analysts. In addition out of the 9 analysts 6 have listed a Buy rating, 2 have listed a Hold rating and 1 analyst listing a Sell rating. The following price targets are the most recent to date, which show the current consensus amongst “smart money” institutions:
- 2/16/21 R.F. Lafferty & Co, Inc: Analyst Jamie Perez initiated coverage by releasing a buy rating with a price target of $23.00, placing an implied return of 27.8% (Price on rating date: $19.46). This had a low impact on the share price.
- 2/11/21 Morgan Stanley: initiated coverage by releasing and overweight rating of $27.00, giving the stock a 50.1% implied return (Price on rating date $18.99). This target had a low impact on the share price.
- 1/19/21 Cowen & Company: Analyst Jeffrey Osborne released a buy rating of $22.00, giving the stock a 22.3% increase (Price on rating date $14.62%). This target had a medium impact on the share price.
Financial forecasts for Fisker in 2022
Firstly, its important to note Fisker is not currently generating any revenue or sales. The company plans to first generate income after the launch and delivery of the Ocean SUV model. The unique operating model of Fisker will see the company outsource the manufacturing of their vehicles. The unorthodox approach allows Fisker to reduce overhead costs significantly. The company believes this should reflect positively on the balance sheet as they begin operations/delivering vehicles in 2022.
Secondly, the company has forecasted the business to generate $600 million in revenue in 2022. Furthermore, the company expects this to multiply to $3.3 Billion in 2023 and $10.6 Billion in 2024 according to a Fisker presentation. Fisker predicts it will earn $2 Billion EBITDA by 2024 and $2.8 Billion in 2025. However, it is worth noting the company is yet to generate any revenue and these figure are only estimates. In addition, the company is yet to release its Q4 earnings which is planned for the 25th of February. The earnings should provide investors with more detail in revenue guidance moving past 2022 and beyond. However, at this stage the company has little public information on forecasts for the next 12-24 months.
What’s in the pipeline for Fisker in 2022?
The company expects to make 225,000 vehicles by 2025 according to Barron. The vehicles will be manufactured by their partner Magna. Fisker says the offset manufacturing is a strategy to de-risk its business model. In addition, the company plans to sell the Ocean model from $37,500 which is competitive in the SUV EV market. Furthermore, customers will also be allowed to lease their electric vehicles online and return after any given time period. The expectation is for the leasing price to be the most competitive in the EV market. Essentially, Fisker’s pricing model is targeting future consumers who prefer accessibility and use over ownership.
In conclusion across the board of analysts on Wallstreet, the sentiment remains bullish for Fisker stock. The upside potential percentage taken from the average of 12 month price targets suggests the stock has room to grow in 2022 (opinion not advice). The companies financials still remain up for debate, with the company in a pre-revenue phase. However, Fisker are predicting strong operating performance with an estimated 225,000 vehicles to be made by 2025. We will continue to update our viewers on Fisker as the Q4 earnings are released.
Written by Tyger Fitzpatrick and Zac Lorschy.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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