As economic uncertainties loom, investors are looking towards Wall Street experts such as Julian Emanuel, Chief Equity & Quantitative Strategist at Evercore ISI, for guidance.
Emanuel believes that the Federal Reserve’s anti–inflationary moves will lead to a rate of price increases of only 3.1% by the end of the year, which will be good for stocks. Looking ahead, he expects the S&P 500 to climb 6.5% to 4,150 by 2023, despite a likely ‘shallow and short’ recession.
To capitalize on this potential growth, investors are taking a closer look at two stocks that Evercore’s analysts have identified as having potential for over 100% upside. With the help of the Stock Target Advisor’s platform, we can dive deeper into these stocks to see what makes them so attractive.
Fisker Inc. (FSR:NYE):
Evercore analyst Chris McNally believes Fisker, Inc. (FSR:NYE) offers an attractive risk-reward opportunity. The company, which was founded by luxury car designer Henrik Fisker, began production of its first model, the Fisker Ocean, in November of last year.
The company has affirmed plans to produce more than 42,000 of the vehicles this year and has more than 63,000 reservations already placed on the Ocean. Additionally, Fisker introduced the drivable prototype of its second vehicle model, the PEAR, in November, and by October 31 had taken 5,000 reservations on the PEAR.
Although Fisker is still pre-revenue, progress toward their vehicle deliveries has been strong. The company has a detailed production plan for the Ocean and is prepping assembly plants in Ohio, Georgia, and India. As of September 30, 2022, the company had cash and liquid assets of $824.7 million and non-GAAP operating expenses for the full-year 2022 in the range of $435 million to $500 million.
McNally rates the stock a Buy and has set a Fisker stock price target of $15 that implies approximately 112% one-year upside. He believes Fisker’s potential to execute on near-term targets while trading at a lower valuation (~6-7x ’25 EPS) has been harsh discounted by investors. With 2023 ASPs of ~$70k on prioritized higher trims, Magna is on track for ~40-45k Ocean unit production and demand is expected to push reservations to the 65-75k YE target.
Overall, the 7 recent analyst reviews on Fisker include 4 Buys and 3 Holds, for a Moderate Buy consensus rating. The stock is currently selling for $7.35, and an average Fisker stock price target is $13.46 which suggests a one-year gain of 86%.
Atlus Power Inc. (AMPS:NYE):
Altus Power, Inc. (AMPS:NYE) is a full-service solar company offering a wide range of solar energy solutions suited for industrial, commercial, and community market scales. The company has been in the industry since 2009, generating over 2.9 billion kWh of solar-powered electricity enough to power more than 400,000 homes for one full year.
Last month, Altus announced a $293 million agreement to acquire 220 megawatts of solar assets from True Green Capital Management, with the agreement expected to close during 1Q23. Altus reported a top line of $30.4 million and a net GAAP loss of $96.6 million in 3Q22, and had over $290 million in unrestricted cash as of the end of the quarter.
Evercore analyst James West is highly impressed by the company and rates Altus shares an Outperform (Buy) with a $15 Atlus Power stock price target, suggesting a one-year upside potential of ~115%. Atlus Power stock has a Strong Buy rating from the analyst consensus and an average AMPS stock price target of $12, implying an upside this year of ~72%.
