Wall Street says 3 shares of electric vehicle batteries will rise more than 70%

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The demand for electric vehicle (EV) batteries continues to grow with the growing transition to EVs supported by supportive government policies. Therefore, Wall Street analysts expect EV battery stocks FREYR Battery (FREY), Romeo Power (RMO) and Flux Power (FLUX) to recover significantly in the near term.

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The demand for electric vehicle (EV) batteries is expected to increase at a rapid rate over the next decade. In addition, governments around the world have taken various measures to promote better electric vehicle infrastructure. For example, the Biden administration proposed a $ 7.5 billion investment in electric vehicle infrastructure.

Investor interest in EV battery stocks is evident in Global X Lithium & Battery Tech ETFs (BED) 8.4% returns over the past three months compared to those of the SPDR S&P 500 ETF Trust (TO SPY) 1% of earnings. In addition, according to a report by Expresswire, the electric vehicle battery market is expected to grow at a CAGR of 18% to $ 37.69 billion between 2021 and 2025.

Against this backdrop, Wall Street analysts expect shares of electric vehicle batteries FREYR Battery (FREY), Romeo Power, Inc. (RMO) and Flux Power Holdings, Inc. (FLUX) to rally to more than 70% in the coming months. So it might be a good idea to add these actions to your watchlist.

FREYR battery (FREY)

Based in Luxembourg, FREY produces and sells battery cells for stationary energy storage, electric mobility and marine applications internationally. It also designs and manufactures lithium-ion battery cell installations.

On August 12, 2021, Tom Jensen, CEO of FREY, said, “Listing on the NYSE is a critical step that supports FREYR’s long-term ambition to decarbonize transportation and energy systems by providing sustainable batteries and energy storage systems (ESS), electric vehicles and other applications, thus generating returns on investment for our shareholders and stakeholders.

FREY’s other income was $ 2.32 million, up 905.2% year-over-year for the second quarter ended June 30, 2021. total responsibilities and equity (deficit) amounted to $ 14.26 million for the period ended June 30, 2021, compared to $ 15.93 million for the period ended December 31, 2020. Its cash, cash equivalents and its restricted cash amounted to $ 12.08 million, up 633.6% year-over-year for the six-month period ended June 30, 2021.

Over the past month, the stock gained 6.8% to close yesterday’s trading session at $ 9.61. Wall Street analysts expect the stock to hit $ 19 in the near term, indicating a upside potential of 97.7%.

Romeo Power, Inc. (RMO)

RMO is an energy storage technology company that designs and manufactures lithium-ion battery packs and modules for commercial electric vehicles in North America. The company operates through two segments: Romeo Power North America and Joint Venture Support.

On September 14, 2021, RMO collaborated with Dynexus Technology to introduce advanced battery detection and diagnostics for battery electric utility vehicles. AK Srouji, CTO of RMO, said, “Dynexus generates critical data that can speed up the cell and battery qualification process, including cell screening and matching, further improving quality control, safety and the reliability of our battery systems. “

RMO’s product revenue increased 1.7% year-over-year to $ 466,000 in the second quarter ended June 30, 2021. Its total liabilities were $ 40.77 million for the period ending June 30, 2021. June 30, 2021, compared to $ 160.34 million for the period ending December 31. , 2020. In addition, its net income was $ 61.34 million for the six-month period ended June 30, 2021, compared to a loss of $ 13.79 for the period the previous year. In addition, its total cash, cash equivalents and restricted cash amounted to $ 45.55 million for the six-month period ended June 30, 2021, up 563.6% from year after year.

Analysts expect RMO’s revenue to grow 398.6% year-on-year to $ 102.07 million in fiscal 2022. In addition, its EPS is expected to grow 72.2% in year-on-year. year-on-year change during the current year. The stock fell 9.9% over the past month to close yesterday’s trading session at $ 4.67. However, Wall Street analysts expect the stock to hit $ 8.00 in the near term, indicating a upside potential of 71.3%.

Flux Power Holdings, Inc. (FLUX)

Through its subsidiary Flux Power, Inc., FLUX designs, develops, manufactures and sells lithium-ion energy storage solutions for forklifts, airport ground handling equipment and other applications. industrial and commercial in the United States.

On July 30, 2021, FLUX announced the shipment of more than 10,000 battery packs to its customers. Company CEO Ron Dutt said, “We believe these more than 10,000 batteries are a testament to the contribution of our employees and customer demand for innovative and safe lithium-ion solutions.

For the fiscal fourth quarter ended June 30, 2021, FLUX’s net sales increased 33.1% year-on-year to $ 8.33 million. The company’s gross profit was $ 1.75 million, up 59.9% year-over-year. Its gross margin increased to 21% from 17.5% a year earlier.

FLUX revenue is expected to be $ 55.81 million in fiscal 2023, an increase of 56.1% year-over-year. The company’s EPS is expected to increase 43.3% over the next year. Over the past month, the stock fell 32.8% to close yesterday’s trading session at $ 5.42. However, Wall Street analysts expect the stock to hit $ 13.67 in the near term, indicating a upside potential of 152.2%.


FREY stock was trading at $ 9.68 per share on Friday morning, up $ 0.07 (+ 0.73%). Since the start of the year, FREY has gained 2.43%, compared to an 18.47% increase in the benchmark S&P 500 over the same period.


About the Author: Riddhima Chakraborty

Riddhima is a financial journalist passionate about the analysis of financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentary.

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