PreMarket Prep Stock Of The Day: Fisker

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

When Morgan Stanley analyst Adam Jonas speaks (or changes a rating), the Street listens.

Before the open Tuesday, he made a bold call on the electric vehicle stock Fisker Inc. FSR, which is the PreMarket Prep Stock of the Day.

Fisker's Volatile 2021: After ending 2020 at $14.65, Fisker matched its December low ($14.32) in January ($14.37) and February ($14.54) and had an explosive five-day rally in late February and early March.

During that short time span, it nearly doubled, moving up from its Feb. 23 closing price ($16.29) to its all-time high ($31.96) on March 2. Its all-time high closing price was made a few days prior at $28.50.

The issue quickly retreated from that lofty level, and the ultimate low for the retreat was made in May at $9.61. The rebound off that low was capped at $20.61 on June 28. The stock etreated from that level and ended Monday’s session at $15.03.

The Fisker Upgrade: Before the open, Morgan Stanley's Jonas resumed coverage on the stock with a Buy rating and $40 price target. He also set a new $90 bull case for the stock.

The analyst cited the company's "focused strategy on design and engineering and supply chain while leveraging the Magna-Steyr relationship" in the upgrade. 

PreMarket Prep's Take: The fundamentals of the company were discussed in great detail on PreMarket Prep. 

Co-host Dennis Dick, who has swing traded the issue over the last year, said: “I want to add it to my portfolio, but I'm not chasing it today.

Dick said he'd be interested in the event of a pullback to the $16-$17 range.

The full discussion the issue from Tuesday’show can be found here:

FSR Price Action: After a much higher open ($18.15 vs. Monday’s close of $15.03), Fisker easily breached the premarket high ($18.25), rallying to $19.48 before reversing course. That high came in just above its July 1 high ($19.31).

As of 1:30 p.m. EST, the ensuing decline has found intraday support well above the top of Monday’s range ($15.07), only reaching $17.25, and is now actively in the lower $18 handle.

The stock ultimately ended the session 21.56% higher at $18.27.