Shares of electric-vehicle start-up Fisker (FSR 4.17%) were trading higher on Wednesday, after a key Wall Street analyst raised his price target for the company's shares.
As of 12:45 p.m. EST, Fisker was up about 10.9% from Tuesday's closing price.
In a new note on Wednesday morning, Citibank analyst Itay Michaeli raised his firm's price target for Fisker to $31, from $26, and reiterated his earlier buy rating on the shares.
Michaeli wrote that he's feeling more confident about Fisker's long-term prospects after Fisker's fourth-quarter earnings report last month, a review of web traffic trends, and a recent discussion that the analyst had with executives at supplier Magna International (MGA 2.01%). Michaeli thinks that there will be several product, brand, and business-development announcements throughout the year that could serve as a "catalyst" to move the stock higher.
Michaeli also noted that recent Fisker events have led to an acceleration in retail reservations for the company's upcoming Ocean electric SUV. That, and the ongoing rebound of some electric-vehicle stocks following last week's sell-off, is likely why Fisker is trading higher today.
Among the recent events mentioned by Michaeli: Fisker said on Tuesday that it now has over 14,000 reservations for the Ocean, including orders from some commercial-fleet operators. Those fleet orders include one for 300 Oceans from Viggo, a Danish ride-hailing service, that was signed late last year.
CEO Henrik Fisker said that he is "encouraged" by the interest from commercial-fleet operators.
"As more and more consumers and businesses are making the transition to electric vehicles, we are ready to partner with forward-thinking companies as they catalyze the shift to electric vehicles," Fisker said.
Fisker also confirmed that the company is on track to begin production of the Ocean at a Magna-owned factory in the fourth quarter of 2022, as previously announced.