Eos Energy Enterprise (EOSE) is a battery manufacturing company involved in designing, developing, and marketing zinc-based batteries for utility-scale, microgrid, and commercial and industrial applications. Eos has developed an array of intellectual property through patents over their battery chemistry, energy block configuration, mechanical product design, and software operating systems. The company operates primarily in North America, with its headquarters in Edison, New Jersey.
Established in 2008, EOSE listed on the Nasdaq via a SPAC merger in November 2020 at a price of $10 per share. The stock is down 84% from its all-time highs, and now trades in penny stock territory - but EOSE has started to regain some traction in 2024.
Eos Energy stock is up more than 100% on a YTD basis, and the shares have more than tripled in value over the past three months.
Eos Energy Reports Q2 Results
Eos Energy reported its Q2 earnings results earlier this month, with revenue for the quarter up 261% year over year to $0.9 million, driven by higher component and commissioning revenue. The quarterly loss per share narrowed to $0.25 from $1.12 last year. Despite the year over year improvement, the Q2 results missed Wall Street's estimates.
Eos ended Q2 with a cash balance of $52.5 million, roughly double its year-ago balance of $23.2 million. During the quarter, EOSE secured a strategic investment worth $315.5 million from a Cerberus Capital affiliate, which will be used to scale the company's Z3 technology.
“We are now in the process of scaling our manufacturing capacity at Turtle Creek, which is expected to significantly improve the unit economics for the Z3 Cube and serves as a critical step toward meeting the cost-out targets outlined in our path to profitability," said CEO Joe Mastrangelo.
Looking ahead, the company backed its forecast for $60 million to $90 million in full-year revenue for 2024. Analysts tracking EOSE expect the battery specialist to narrow its losses this year and the next before achieving full-year profitability in fiscal 2026.
A New Street-High Price Target for EOSE
Analysts are optimistic on the energy storage stock, which has a consensus “Moderate Buy” rating from seven analysts in coverage. EOSE has four “Strong Buy” ratings and three “Holds,” along with a mean price target of $3.67 - suggesting an upside potential of 64.5% from current levels.
Last week, Stifel resumed coverage on Eos with a “Buy” rating, with analyst Stephen Gengaro highlighting an expected increase in demand for the company's zinc-halide batteries to support the power grid. The analyst also noted EOSE's “robust” pipeline, as well as the improved liquidity situation following the Cerberus investment and a Department of Energy loan.
Gengaro set a price target of $6.00 for EOSE stock, which is the new Street-high forecast. Based on current prices, that implies expected upside of 169%.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
