4. Enovix Corporation (NASDAQ:ENVX)
Average Analyst Price Target Upside as of September 12: 114.13%
Number of Hedge Fund Holders: 22
Enovix Corporation (NASDAQ:ENVX) is a California-based company that has made significant strides in the field of advanced battery technology with its unique 3D Silicon cell design. The breakthrough approach features a silicon anode that is entirely active, a major upgrade from conventional lithium-ion batteries.
As a result, the new batteries offer a remarkable boost in energy density and lifespan, which makes them highly attractive for applications demanding extended battery life and higher performance. Additionally, the stock has a consensus Strong Buy rating among 12 analysts, and its average price target of $20.00 represents an upside of 114.13% from current levels, as of September 12.
Enovix (NASDAQ:ENVX) was part of 22 funds’ portfolios and the total stake value was $153.245 million in the second quarter. As of June 30, Electron Capital Partners is the largest shareholder in the company and has a position worth $89.7 million.
In July 2022, Enovix (NASDAQ:ENVX) took a major step forward by delivering its first battery packs. The packs incorporate their high-energy silicon anode cells along with sophisticated electronic control systems.
The development means that the company is now able to offer battery solutions that provide enhanced power for devices that consume more energy. The shift from single-cell offerings to full battery packs opens up new opportunities in various consumer electronics and other energy-intensive applications.
In the second quarter, the company reported a non-GAAP EPS of -$0.14, which beat expectations by $0.09. The company also achieved revenues of $3.8 million, which exceeded forecasts by $0.15 million. The revenues showed a significant increase from the $42,000 reported in the same quarter of the previous year.
The company has a robust financial position that supports its ongoing projects and growth as it ended the quarter with around $250 million in cash and equivalents. For the third quarter, the company has projected revenues between $3.5 to $4.5 million, which shows continued progress and expansion in its market presence. It ranks 4th on our list of the most promising EV battery stocks according to analysts.
Massif Capital Real Assets Strategy stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter:
“Enovix Corporation (NASDAQ:ENVX): Enovix is perhaps a bit of an outlier in our portfolio given that it is a battery manufacturer selling into consumer goods markets, but it fits nicely in what we believe to be the Massif Capital analytical sweet spot, businesses where science/technology, geopolitics/geoeconomics and energy/materials overlap. While some would argue that Enovix is inappropriate for a liquid real asset portfolio, the traditional definition of real asset businesses is dated.
Traditionally, real asset businesses are those that own and operate real estate, infrastructure, and natural resource assets. While this definition is workable, and most of the companies we invest in fall into one of these categories, it does not consider the ever-growing role of applied physical sciences in specific manufacturing fields, nor does it take into account the growing importance of material sciences and the changing nature of energy in general. Enovix is a material sciences business aiming to transform an ever-growing list of unique, highly refined materials into energy storage devices. They create value by understanding materials’ physical and electrochemical properties better than others…” (Click here to read the full text)
