Fisker (FSR, $18.99) and QuantumScape (QS, $54.66) get overweight ratings at Morgan Stanley

A Morgan Stanley analyst initiated coverage of electric vehicle companies Fisker  and QuantumScape   with overweight ratings.

Morgan Stanley analysts led by Adam Jonas set a $70 price target for QuantumScape. According to Jonas, it was among companies in the electric vehicle battery space offering "the most compelling strategies" and has positive risk/reward balance. QuantumScape went public last year.  As more auto makers and companies such as Apple Inc. try to secure a domestic supply of solid-state batteries, QuantumScape “may be very well positioned,” the analysts noted.

 Jonas set a $27 price target for Fisker shares, saying the company was a play on an all new, asset-light, design-centered EV business model that improves time to market and break-even points. The analysts said it is “one of the more de-risked and strategically underpinned business models” .