Enovix shares rocketed Thursday after the maker of next-generation lithium-ion batteries announced several big milestones. ENVX stock surged more than 30% on the news.
The Fremont, Calif.-based company late Wednesday reported its first revenue since going public in January 2021. It began shipping commercial battery cells in the second quarter. Enovix also announced key customer-related milestones as interest in its products ramps up.
Enovix makes advanced silicon-anode lithium-ion batteries. The company's proprietary 3D cell architecture increases energy density and maintains high cycle life. Its initial market is batteries for mobile devices, but the company expects to expand into the electric-vehicle and energy-storage markets.
Enovix generated $5.1 million in revenue in the June quarter from services and a small contribution from commercial battery cells. The revenue was mostly from a single customer. However, Enovix shipped battery cells to 10 electronics manufacturers and four distributors for testing and qualification. The company said it is now working with some of the world's largest consumer electronics companies, which could turn into high-volume customers.
ENVX Stock Soars On News
On the stock market today, ENVX stock rocketed 30.8% to close at 21.13. ENVX stock has an IBD Relative Strength Rating of 96, meaning it is in the top 4% of stocks for performance over the last 12 months.
For the full year, Enovix expects to generate revenue of $6 million to $8 million.
"We are squarely focused on driving toward $1 billion of revenue with industry-leading margins in the coming years," Chief Executive Harrold Rust and Chief Financial Officer Steffen Pietzke said in a letter to shareholders.
Apple, Meta, Samsung Possible Customers
Loop Capital analyst Ananda Baruah reiterated his buy rating on ENVX stock with a price target of 50.
Enovix is likely working with Apple, Facebook parent Meta Platforms and Samsung on technology qualifications for its batteries, Baruah said in a note to clients. Enovix has publicly announced the U.S. Army as a customer.
Craig-Hallum analyst Anthony Stoss maintained his buy rating on ENVX stock and raised his price target to 25 from 20.
Enovix likely started shipping batteries in the second quarter to its first smartwatch customer, Garmin, Stoss said in his note to clients.
"We also note the company received an initial smartwatch engineering order from one of the world's largest consumer electronics companies (we believe Apple) last quarter," Stoss said. "This initial order should give Enovix a foot in the door to help proliferate its battery technology across this customer's broad electronics portfolio."
Material revenue from Apple would not happen until at least 2024, given the company's rigorous qualification processes, Stoss said.
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