What happened
Some electric vehicle (EV) stocks continue to have quite the charge for investors, but lately Fisker (FSRN -12.70%) hasn't been among them. Investor sentiment dimmed following the company's latest earnings release, compounded by several analyst price target cuts. On Friday, these factors drove Fisker's share price down by almost 9%.
So what
The latest in a series of Fisker stock price target reductions occurred Friday morning. It was enacted by Barclays (BCS 0.58%) analyst Brian Johnson, who now thinks the shares are worth $16 apiece rather than his previous $18. He is maintaining his equal-weight (i.e., neutral) recommendation, but he did point out in his latest research note that reservations for Fisker's Ocean EV, an SUV, have increased notably.
Image source: Fisker.
In trimming his target, Johnson was joining a small cadre of Fisker analysts who have made similar moves since the company unveiled its Q4 results on Wednesday. Its revenue of roughly $41,000 was better than the average analyst projection, and its per-share net loss of $0.47 broadly met expectations.
Despite the round of price target cuts, numerous prognosticators remain bullish on the company's prospects. One is Citigroup's (C 1.41%) Itay Michaeli, who is keeping his buy recommendation on the stock despite a slight price target trim to $29, from $30. Michaeli described Fisker's results as "encouraging," particularly the growth in Ocean reservations to 31,000 recently from 24,500 in early January.
Now what
Fisker isn't a company in the forefront of the EV pack, as its one of the manufacturers that has yet to deliver a vehicle. Still, as a business that runs an "asset-light" operation in the notoriously high-expense auto industry, and with a strong pedigree in vehicle design, Fisker should remain on the radar of many investors looking for attractive buys in this sector.
