TD Cowen has reduced its 12-month price target on QuantumScape (NASDAQ:QS) to $8, down from $16, while retaining a Hold recommendation on the battery technology developer. The revised target sits just above the stock’s recent trading price of $7.20 and comes after the share price fell sharply over the past week.
The analyst firm attributed the downward adjustment to persistent headwinds in the electric vehicle market that have delayed its estimates for QuantumScape’s production ramp. Those shifted timing assumptions were the primary driver for halving the firm’s previous price target.
Despite the cut, TD Cowen noted that QuantumScape continues to execute on its plans. The firm highlighted the company’s 2026 targets as indicative of expansion potential into higher-value non-automotive applications for its battery technology. However, Cowen also emphasized that realizing meaningful revenue from those alternative markets will require time.
Market performance provides additional context for the revision. QuantumScape’s shares have declined 18.4% over the past week and are down 30.9% year-to-date. The company’s recent fourth-quarter report for 2025 preceded the price target change.
In that quarter, QuantumScape reported earnings per share of -$0.17, a result that met analyst expectations. The company did not supply a revenue forecast for the quarter. Following the release, the stock registered a modest uptick in after-market trading, which the market interpreted as a mildly positive reaction to the firm meeting EPS expectations.
No announcements of mergers or acquisitions accompanied the results, and the reporting did not mention analyst upgrades or downgrades tied to the quarter. Commentary from TD Cowen and the company’s reported results indicate the primary focus for investors remains how QuantumScape will align future execution with market expectations amid broader EV sector challenges.
For now, the outlook from the analyst community reflected in this action is cautious: the valuation has been lowered to reflect pushed-out production timelines, while the company’s execution and potential in non-automotive markets are recognized but seen as longer-term prospects.