Enovix stock target holds at $36 amid ISO certification

Published 31/03/2025, 14:56
Enovix stock target holds at $36 amid ISO certification

On Monday, Oppenheimer maintained a positive outlook on Enovix Corporation (NASDAQ:ENVX) shares, reiterating an Outperform rating and a $36.00 price target - representing significant upside from the current price of $7.15. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock, with price targets ranging from $10 to $100. The endorsement follows Enovix’s recent announcement that it has achieved formal ISO certification, a development that has led to a customer payment under a development agreement.

Enovix, known for its advanced battery technology, announced it has reached a significant milestone by completing the second phase of a development agreement with a leading smartphone OEM, which included delivering customized sample battery cells. These cells were tailored to meet specific requirements such as cycle life, fast charge capability, and high energy density levels. This achievement has triggered a payment from the customer, marking a notable step forward for the company, which has demonstrated impressive revenue growth of over 200% in the last twelve months.

The ISO certification, obtained last week, is seen as a critical step in reinforcing customer confidence and advancing towards mass production slated for late 2025. The acknowledgment of this progress is significant, as it counters the primary concern of potential delays in the ramp-up of Enovix’s Fab 2, a key manufacturing facility for the company’s battery production. InvestingPro analysis shows the company maintains a strong financial position with a healthy current ratio of 5.49, indicating robust ability to meet short-term obligations.

Oppenheimer’s commentary suggests that the recent developments are likely to enhance customer trust in Enovix’s technology platform and could lead to further investment in product designs that incorporate Enovix’s batteries. The firm anticipates that the company will continue to build close relationships with its customers and is well-positioned to secure additional contracts that may include prepayments.

The positive sentiment from Oppenheimer reflects a belief in Enovix’s ongoing progress and its ability to meet significant milestones on the path toward mass production, which is expected to commence in late 2025.

In other recent news, Enovix Corporation reported a 13% sequential increase in revenue for Q3 2024, reaching $4.3 million, despite a non-GAAP EPS loss of $0.17. The company also announced the opening of a new manufacturing facility in Malaysia, which is expected to bolster its production capabilities. Cantor Fitzgerald maintained its Overweight rating and $30 price target for Enovix, citing the company’s strong earnings report and expansion into new markets, such as drones and augmented reality devices. Enovix has made significant strides in the smartphone battery market, with plans to begin shipping to multiple OEMs this year. Additionally, the company has completed the delivery of sample battery cells to a major smartphone OEM, marking a significant milestone in its development agreement. Enovix’s recent ISO 9001:2015 certification for its Fab2 facility in Malaysia further underscores its commitment to quality manufacturing operations. The company is also targeting revenue between $8 million and $10 million for Q4 2024, with plans to launch its first smartphone battery by late 2025. These developments reflect Enovix’s strategic advances and growing influence in the high-performance battery technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.