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Truist Securities initiated coverage of QuantumScape Corporation (NYSE:QS) with a Hold rating and $10.00 price target. Truist believes that the electric vehicle battery developer is on the path to advance the “rapidly growing EV battery industry” with its proprietary solid-state technology.
An analyst wrote “While we believe QS batteries could eventually come to play a significant role in advancing EV performance & costs, we see limited near-term upside in the current market backdrop with commercial volumes still years away. As such, we initiate coverage with a Hold rating and a $10 price target.”
QuantumScape’s key relationship with Volkswagen (ETR:VOWG_p) provides notable benefits in the company’s path to commercialization including a 50/50 JV for QS’s first GWh-scale production facility. The company has also announced partnerships with 6 unnamed OEMs for sample volumes from the company’s pre-pilot line.
Several companies are working to commercialize various forms of solid-state batteries, with most in the customer sampling phase. Truist believes QS has a technological advantage, as demonstrated by its impressive performance results under the company’s Gold Standard testing conditions which are some of the most stringent testing conditions in the emerging space.
Shares of QS are down 1.41% in premarket trading on Thursday.
