“QuantumScape Stock Isn’t a Buy, but Shares Could Rise Almost 70%. What Gives?”
July 23, 2021
“J.P. Morgan analyst Jose Asumendi is the latest Street analyst to recommend caution. Wednesday, he launched coverage of QuantumScape (ticker: QS) with a Hold rating on its stock and a $35 price target.
It’s a lukewarm rating. Still, QuantumScape stock is having a fine day, up 3.3% at $24.37 a share. The S&P 500 and Dow Jones Industrial Average, for comparison, are up 0.6% and 0.7% in midday Wednesday trading. With a target price of $35, Asumendi is predicting shares could rise about 48% from recent levels. Still, a Hold rating isn’t a Buy rating…
The average analyst price target for Quantum stock, however, is $40, up about 67% from recent levels. The average analyst price target for a stock in the S&P is typically 5% to 10% than where it currently trades. In the case of QuantumScape, what gives? There is a lot that can potentially go right for the company. Asumendi, for his part, believes QuantumScape is sitting on breakthrough technology. Quantum is pioneering solid-state lithium anode rechargeable batteries…”