QuantumScape resumed with a Hold at Deutsche Bank

Deutsche Bank resumed coverage of QuantumScape with a Hold rating and $6 price target. The analyst believes the recent licensing agreement with PowerCo “marked a meaningful validation” to the company’s cell technology and significantly reduced its capex and operational expense burden in the years to come. However, the firm says QuantumScape could see downside risk from delay or failure to moving into C-sample and commercialization, insufficient data to transition beyond B-sample, as well as negative sentiment around electric vehicles.