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On Tuesday, Benchmark analyst Mickey Legg revised the price target for Enovix Corporation (NASDAQ:ENVX) stock to $15.00, down from the previous target of $25.00, while sustaining a Buy rating on the shares. The adjustment reflects a recalibrated revenue forecast for the year 2026, which is now set at $106.4 million, a decrease from the prior estimate of $144.5 million. According to InvestingPro data, ENVX stock has shown significant volatility, with the price ranging between $5.27 and $18.68 over the past 52 weeks. The company currently maintains a market capitalization of approximately $1.15 billion.
Legg’s report anticipates that Enovix, which is currently in the product sampling phase for the year 2025, will transition to product launches in 2026. The analyst suggests that the initial orders may be modest, with the potential for significant growth as the company secures larger orders. The timeline for Enovix’s entry into the premium smartphone market in Asia is projected for early 2026, followed by a monitoring period of less than a year before potentially expanding orders. InvestingPro analysis indicates that while the company holds more cash than debt on its balance sheet, it’s currently burning through cash rapidly - a crucial factor to monitor during this pre-revenue phase.
The analyst remains optimistic about Enovix’s market entry and the expected ramp-up of orders. The company’s silicon batteries are anticipated to fetch a premium average selling price (ASP) of $15, compared to the typical $10-$12 range for graphite silicon batteries. This price advantage is seen as a positive indicator for the company’s financial performance.
Enovix is projected to achieve gross profitability in the fourth quarter of 2026, with a long-term margin expectation exceeding 30%. Legg’s maintained Buy rating indicates confidence in the company’s future despite the lowered revenue projections and price target adjustment. The report concludes with a reaffirmation of the Buy rating, signaling Benchmark’s continued endorsement of Enovix’s stock.
In other recent news, Enovix Corporation reported its first quarter of positive gross margin, marking a significant achievement in its financial performance. The company has also announced the acquisition of a battery cell manufacturing facility from SolarEdge Technologies (NASDAQ:SEDG) in South Korea, which is expected to enhance its production capabilities for the defense sector. Enovix’s expansion into the drone market and its ongoing presence in the augmented reality and smart glasses sectors have been highlighted by analysts at Stifel, who noted the company’s strategic growth initiatives.
Oppenheimer has maintained an Outperform rating with a $36 price target for Enovix, following its recent ISO certification and successful delivery of customized battery cells to a leading smartphone OEM. This milestone has triggered a customer payment under a development agreement, reinforcing Enovix’s reputation for advanced battery technology. Cantor Fitzgerald also reiterated its Overweight rating and $30 price target, citing the company’s robust earnings and strategic positioning in the smartphone battery market, which is valued at over $10 billion.
The recent ISO certification is seen as a critical step for Enovix, with plans for mass production to begin in late 2025. Enovix CEO Raj Talluri expressed satisfaction with the company’s progress, emphasizing its commitment to quality in manufacturing operations. The acquisition in South Korea is anticipated to improve gross margins and accelerate production, with increased battery sales projected for 2025 and 2026. These developments reflect Enovix’s ongoing efforts to expand its market reach and enhance its product offerings across various technology sectors.
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