Fisker Received an Analyst Upgrade and SmileDirectClub Missed Earnings Expectations
Fisker is a relatively new electric vehicle start-up based in Los Angeles, California. They have a market cap of $5.091 billion, which is tiny compared to Tesla, but they just entered the market a year ago through a SPAC deal with blank-check company Spartan Energy Acquisition Corp.
On Tuesday, analyst Adam Jonas from the well-renowned bank Morgan Stanley raised Fisker’s price target to $40, which equates to 122% in upside. Jonas said that he believes Fisker will be able to launch its cars on time and ramp up production in the coming years, which separates it from other EV start-ups like Nikola who are struggling with that. Moreover, he believes that Fisker is the “Apple of Autos” due to their efforts on diversifying production, which completed the bullish case for the stock.
SmileDirectClub has been a very popular stock due to their work in the dental industry regarding Invisalign. The Nashville-based company is valued at $2.002 billion, but the stock has had a rough time since its IPO in 2019.
Unfortunately, this trend has continued with SmileDirectClub’s earnings report on Tuesday. The company reported a loss of 14 cents per share and $162.6 million in revenue, which missed analyst expectations. Along with that, they forecasted $750 million to $800 million in revenue for the year, which was underwhelming. This was mostly a result of the cyberattack that SmileDirect had been victim to in May, which played a major role in the revenue numbers. Overall, it was a disappointing quarter for the company, and they hope to rebound in the coming months.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.