QuantumScape Corporation

QuantumScape Corporation (NYSE: QS) is a battery technology company focused on electric vehicles (EVs) and other applications. The company's solid-state lithium-metal batteries are currently being developed and commercialized.

Key Highlights

• The company reported operating losses of USD 215.27 million in FY21 (ended December 31, 2021) compared to USD 81.02 million in FY20.
• QS' net loss reduced to USD 45.98 million during FY21 vs. USD 1.68 billion in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 1.45 billion and total debt of USD 39.40 million.
• On February 22, 2022, QS announced the opening of an office in Kyoto, Japan, as part of its expansion into the Asia-Pacific region. The new property will include a cutting-edge battery research and development laboratory.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 13.21 to USD 64.80.
• QS stock price decreased 39.71% and 72.41% in the past six and nine months, respectively.

Conclusion: Considering pre-revenue status of the company, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 16.52, up 5.29%, as of March 17, 2022.

Technical Price Chart (as of March 17, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Paysafe Limited

Paysafe Limited (NYSE: PSFE) is one of the largest digital commerce companies, providing industry-leading payment processing, digital wallet, and online cash solutions to help businesses and consumers connect and transact. It accepts 70 different payment methods in over 40 other currencies worldwide. Its Integrated Processing segment generates the majority of its revenue. The company's market capitalization was USD 7.56 billion as of July 21, 2021. After completing a business combination agreement with Foley Trasimene Acquisition Corp. II, a special purpose acquisition company, PSFE was listed on the NYSE on March 31, 2021.

Key Highlights

• The company reported YoY growth of 4.24% in net revenues to USD 1.49 billion in FY21 (ended December 31, 2021) compared to USD 1.43 billion in FY20.
• PSFE's net loss reduced to USD 110.95 million during FY21 vs. USD 126.72 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 1.97 billion and total debt of USD 2.76 billion.
• PSFE's FY21 cash cycle of 84 days is significantly higher than the industry median of 35 days.
• Its ROE was -4.9% in FY21 vs. the industry median of 5.9%.
• PSFE announced the appointment of J.P. Morgan as its core banking provider on March 9, 2022. The work for Paysafe will be led by the global financial services firm's Payments business, which combines cash management, payment solutions, and merchant services for corporate clients, financial institutions, and governments.
• PSFE announced the appointment of J.P. Morgan as its core banking provider on March 9, 2022. The work for Paysafe will be led by the global financial services firm's Payments business, which combines cash management, payment solutions, and merchant services for corporate clients, financial institutions, and governments.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 2.59 to USD 16.79.
• PSFE's stock price decreased 60.0% and 70.95% in the past six and nine months, respectively.

Conclusion: Considering the flat topline, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 3.30, up 1.54%, as of March 17, 2022.

Technical Price Chart (as of March 17, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.