Microvast Shares Surge Despite Morgan Stanley's Bearish Price Target: What's Going On?

Microvast Holdings Inc MVST shares surged 2.72% to $8.68 in Wednesday’s regular session.

What’s Moving? The company's shares are trading another 2% higher in the pre-market session at $8.86 in the pre-market session on Thursday. Microvast labels itself as a “technology innovator” of Lithium-ion batteries.

Why Is It Moving? Morgan Stanley initiated coverage on Microvast this week with a price target of $6 and an underweight rating. 

The news trended on r/WallStreetBets or WSB, a Reddit forum best known for short squeezes in GameStop Corporation GME and AMC Entertainment Holdings Inc AMC. 

See Also: Robinhood Remains Top WallStreetBets Interest By Far As Stock Surges 50% — AMD, AMC, Moderna Other Top Trends

Posters on WSB were critical of Adam Jonas, the Morgan Stanley analyst, who assigned the price target. 

“This is clearly manipulation at its best. If I had to guess, they are trying to lower the price for some investors who wants a better entry,” claimed u/Subspace13 on the forum.

In a highly-upvoted post, another poster said he pumped in $2.5 million into Microvast and was up nearly $200,000 on the investment following an “inverse Adam Jonas” strategy.

Read Next: What's Going On With SoFi Stock?

Photo: Courtesy of Microvast