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Investing.com - Jefferies initiated coverage on Eos Energy Enterprises (NASDAQ:EOSE) with a Hold rating and a $6.50 price target on Friday. The stock, currently trading at $7.34, has demonstrated remarkable momentum with a 215% return over the past year. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
The research firm cited near-term headwinds for the grid-scale, zinc-based battery energy storage system manufacturer as management works to demonstrate scalability of its novel, long-duration technology.
Despite these challenges, Jefferies views the long-term story as compelling, driven by potential upside in future years from FEOC (Front-of-the-Meter Energy Optimization and Control).
The analyst noted that favorable OBBB (Onshoring Battery and Biomanufacturing Base) policy creates opportunities for Eos Energy’s 90% domestic battery technology.
Jefferies projects that Eos Energy will achieve inflecting margins and free cash flow generation in 2027 and beyond as management expands production capacity, though its estimates remain below consensus.
In other recent news, Eos Energy Enterprises reported its second-quarter 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of -1.05, significantly missing the forecasted -0.1371, marking a 665.86% negative surprise. Additionally, Eos Energy’s revenue was reported at $15.24 million, which did not meet the anticipated $25.11 million, falling short by 39.31%. In executive news, Eos Energy appointed John Mahaz as the new Chief Operating Officer. Mahaz brings over 30 years of experience from Jabil Inc., where he managed operations for Europe and the Americas. His role at Eos will involve leading the company’s operations, supply chain, and manufacturing strategy. These developments come amid a challenging financial period for the company.
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