Fisker Inc (NYSE:FSR) shares are trading higher Thursday following positive analyst coverage from Needham.

Needham analyst Vikram Bagri initiated coverage on Fisker with a Buy rating and a $12 price target, citing a "vast opportunity" ahead of the company.

Fisker's Ocean SUV will offer "cutting edge technology" at affordable prices, the analyst wrote in a note to clients. Moreover, Bagri applauded the company's approach to manufacturing, which reduces capital requirements through contract manufacturing agreements with some of the largest and most well known companies.

The Needham analyst noted that the Fisker Ocean will be assembled by Magna, which is the 4th largest supplier to the automotive industry and has extensive experience.

"This not only reduces execution risk and time to market but also means higher margins early on in the cycle," the analyst said.

Bagri is also optimistic about the company's business model and skateboard design, which he expects to allow Fisker to launch more models sooner and gain market share.

"Despite these positive attributes, Fisker trades at a discount to its peers," Bagri said.

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FSR Price Action: Fisker has a 52-week high of $18.20 and a 52-week low of $7.95.

The stock was up 5.90% at $9.78 at time of publication.

Photo: courtesy of Fisker.