Ben Kallo, an analyst from Robert W. Baird, maintained the Hold rating on QuantumScape (QS – Research Report). The associated price target remains the same with $8.00.
Ben Kallo’s rating is based on a blend of QuantumScape’s recent achievements and its ongoing challenges. The company has successfully shipped its Alpha-2 prototype batteries to a potential automotive client, marking one of its key goals for 2024. This prototype is an improvement over its predecessor, featuring higher-loading cathodes and an improved frame design, which is critical as it serves as a precursor to QuantumScape’s first commercial product, the QSE-5. Additionally, the firm reiterated its liquidity forecast, indicating that its cash reserves are expected to last into the second half of 2026, a factor that demonstrates the company’s financial prudence.
However, Kallo remains cautious, maintaining a Hold rating, as QuantumScape still needs to accomplish significant milestones. The company’s 2024 objectives include ramping up its Raptor separator process to increase production capacity, commencing low-volume production of its first commercial cell, and preparing for a significant scale-up in production with the Cobra process in 2025. While encouraged by QuantumScape’s disciplined spending and progress, Kallo awaits further details on the company’s go-to-market strategy and execution of future targets. These factors contribute to the analyst’s tempered stance, reflecting optimism about the company’s potential tempered by the acknowledgment of the risks and uncertainties that lie ahead.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $7.00 price target.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QS in relation to earlier this year.
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QuantumScape (QS) Company Description:
QuantumScape Corp is engaged in development of next generation solid-state lithium-metal batteries for use in electric vehicles.
Read More on QS:
- QuantumScape reports Q1 EPS (24c), consensus (21c)
- Quantumscape options imply 10.4% move in share price post-earnings
- Options Volatility and Implied Earnings Moves Today, April 24, 2024
- QuantumScape price target lowered to $6 from $8 at Truist
- Quantumscape call volume above normal and directionally bullish
