Shares of Quantumscape Corp. (QS) plummeted 8.15% in intraday trading on Thursday, as investors reacted to a double blow from UBS analysts. The sharp decline follows a pre-market drop of 6.67%, signaling a day of significant losses for the solid-state battery manufacturer.
The primary catalyst for the sell-off was UBS's decision to downgrade Quantumscape from Neutral to Sell, indicating a bearish outlook on the company's near-term prospects. Adding to the negative sentiment, UBS also slashed its price target for Quantumscape by a staggering 50%, from $5 to $2.5. This dramatic reduction in the expected value of the stock has likely contributed to the increased selling pressure, as investors reassess their positions based on this new, lower valuation benchmark.
Despite the pessimistic view from UBS, it's worth noting that the overall analyst consensus on Quantumscape remains mixed. According to FactSet, the company currently has an average rating of "hold" and a mean price target of $5.50. This suggests that while some analysts are becoming more cautious, others still see potential value in the stock. As the market digests this new information, investors will be closely watching for any further developments or shifts in analyst sentiment regarding Quantumscape's future prospects in the competitive solid-state battery market.
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