Shares of Quantumscape Corp. (QS) plummeted 8.15% in pre-market trading on Thursday, as investors reacted to a significant downgrade and price target cut from UBS analysts. The sharp decline surpassed earlier pre-market estimates, reflecting growing investor concern over the solid-state battery manufacturer's prospects.
UBS dealt a double blow to Quantumscape by lowering its rating from Neutral to Sell and slashing its price target by 50%, from $5 to $2.5. This bearish outlook from UBS suggests a pessimistic view of the company's near-term growth potential and has triggered a substantial sell-off among investors reassessing their positions based on this new, lower valuation benchmark.
Quantumscape, known for its development of solid-state batteries for electric vehicles, has been facing increased scrutiny from analysts. According to FactSet, the company currently holds an average rating of "hold" with a mean price target of $5.50 among polled analysts. This latest downgrade from UBS could potentially influence other analysts' perspectives and further impact investor sentiment in the coming trading sessions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.