Amprius stock rating upgraded to Outperform by William Blair on drone industry prospects

Investing.com - William Blair upgraded Amprius Technologies (NYSE:AMPX) from Market Perform to Outperform on Friday, citing the company’s positioning to benefit from the administration’s push to develop a domestic drone industry. The stock, which has surged 188% year-to-date and trades near its 52-week high of $8.12, maintains a strong balance sheet with a current ratio of 4.74.

The upgrade comes as Amprius is expected to convert customer evaluations into large purchase orders, supported by increased focus on drones, according to William Blair’s research note. InvestingPro analysis indicates the company is currently overvalued, with analysts projecting 143% revenue growth for FY2025.

William Blair highlighted that risks associated with Amprius’ China-based contract manufacturing are being eliminated as the company brings South Korean operations online by year-end.

Despite recent stock price gains following a drone-related executive order, William Blair believes momentum will continue for Amprius shares as the company capitalizes on drone industry growth.

The firm characterized the upgrade as an " Action (WA:ACT) Call," suggesting a high level of conviction in the recommendation based on Amprius’ strategic position in the expanding domestic drone market.

In other recent news, Amprius Technologies reported its Q1 2025 earnings, showcasing a net loss of $9.4 million or $0.08 per share, which was better than the anticipated loss of $0.0913 per share. The company’s revenue reached $11.3 million, marking a 6% increase from the previous quarter and a substantial 383% rise from the same period last year. Additionally, Amprius has expanded its global production capabilities through a contract manufacturing agreement with a South Korean battery producer, focusing on its high-performance SiCore cells. This strategic move aims to meet the growing demand for advanced drones and other high-energy applications. In corporate governance, shareholders approved the election of two directors and the ratification of BDO USA, P.C. as the company’s independent auditor for the fiscal year ending December 31, 2025. Furthermore, Amprius was selected for the Amazon (NASDAQ:AMZN) Devices Climate Tech Accelerator, highlighting its role in reducing carbon emissions with its innovative SiCore battery platform. These developments underscore Amprius’s efforts to enhance its market position and production capabilities in the battery industry.

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