Evercore revised its rating for Fisker (NYSE:FSR) from Outperform to In-Line and set a 12-month price target of $2.00 for the stock. This downgrade follows Fisker’s announcement that it has lowered its production forecast from an initial range of 13,000 to 17,000 units to just 10,000 units.
The analysts at Evercore believe that 2024 will be a critical year for Fisker, requiring careful planning to navigate recent challenges. These challenges include risks to the brand’s reputation, the necessity of raising additional funds, and the potential dilution of capital. In their note, Evercore ISI analysts expressed concerns about Fisker’s execution capabilities and the absence of solid evidence of improved performance. They described the upcoming year as a “highly precarious tightrope” involving execution challenges, brand risks, the need for capital raises, and the possibility of dilution.