Needham raises Solid Power stock price target to $4 on battery progress

Published 07/08/2025, 13:04
Needham raises Solid Power stock price target to $4 on battery progress

Investing.com - Needham raised its price target on Solid Power (NASDAQ:SLDP) to $4.00 from $2.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results. The stock, currently trading at $3.43, has shown remarkable momentum with a 168% return over the past year, according to InvestingPro data.

The research firm cited consistent progress in Solid Power’s cell and electrolyte partnerships, which increases the "call option value" in the company’s shares given its substantial cash balance compared to its burn rate. InvestingPro data confirms the company’s strong liquidity position with a current ratio of 23.9x and minimal debt-to-equity ratio of 0.02.

Needham’s updated price target represents 5 times its estimated 2032 adjusted EBITDA, discounted back to present value, and assumes all-solid-state batteries will capture 4.5% of electric vehicle units, up from its previous 4% estimate.

The firm projects approximately $500 of monetization per vehicle for Solid Power and anticipates the company will raise $200 million in fiscal year 2027.

Needham believes Solid Power and peers are benefiting from increased enthusiasm for all-solid-state batteries, while the company’s financial position allows it to weather the current downturn in U.S. electric vehicle adoption.

In other recent news, Solid Power Inc. reported its second-quarter earnings for 2025, showcasing a notable revenue performance. The company achieved a revenue of $7.5 million, which exceeded the anticipated $5 million, reflecting a significant 50.8% positive surprise. Despite this revenue success, the earnings per share (EPS) aligned with expectations, recording a loss of $0.14. While the revenue figures surpassed forecasts, the stock experienced a decline in after-hours trading. These developments highlight the company’s current financial status and market response.

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