1 Wall Street Analyst Just Slashed This EV Stock's Price Target by 80%. Here's What That Means.
Just when you thought it couldn't get any worse for Fisker (NYSE: FSR) stock, you're suddenly staring at a company that's lost 70% of its market capitalization since the start of the year. One Wall Street analyst has now cut the electric vehicle (EV) stock's price target by a whopping 80%.
Soon after Fisker released its preliminary numbers for the fourth quarter and full year 2023 on Feb. 29, Citi analyst Itay Michaeli slashed Fisker stock's price from $4 a share to only $0.80.
While Fisker expects to deliver 20,000 to 22,000 Ocean SUVs this year, versus only 4,929 units in 2023, backed by a growing dealership network, it is burning cash so rapidly that management has issued a "going concern" warning. Simply put, Fisker's existing resources aren't enough for it to run operations for the next 12 months, and the company will seek debt or share sale to raise money. Meanwhile, Fisker said it will delay the regulatory filing of its annual report with the Securities and Exchange Commission.
Source Fool.com
