QuantumScape, the Consumer Cyclical sector company, was revisited by a Wall Street analyst on July 24. Analyst Mark Delaney from Goldman Sachs maintained a Sell rating on the stock and has a $3.00 price target.
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Mark Delaney has given his Sell rating due to a combination of factors impacting QuantumScape’s outlook. Despite the company’s recent progress, including advancements in manufacturing processes and agreements that could potentially enhance future revenues, there are significant concerns that remain unaddressed. The primary issue is the extended timeline before QuantumScape can generate substantial revenue, with meaningful income not expected until 2028.
Additionally, the competitive landscape is becoming increasingly challenging, with other companies making strides in battery technology that may diminish QuantumScape’s differentiation. The current stock price does not, in Delaney’s view, adequately reflect these risks, leading to a conservative price target significantly below the current trading price. These factors combined contribute to the Sell rating, as the potential downsides outweigh the positives in the near term.
QS’s price has also changed dramatically for the past six months – from $5.160 to $12.630, which is a 144.77% increase.