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EOS Energy surges as Stifel launches with Buy rating, Street-high PT

EOS Energy (NASDAQ:EOSE) +12.3% in early trading Friday after Stifel started coverage with a Buy rating and Street-high $11 price target, saying the company has strong revenue growth visibility from its backlog.

Eos Energy (EOSE) "has commercialized one of the most proven grid storage battery chemistries in the market, necessary for further renewables adoption given inherent limitations of lithium ion chemistry," Stifel's Vincent Anderson wrote.

The 2023 ramp up of the Z3 battery "should drastically reduce unit costs, turning the corner to profitability even without the further 30%-plus reduction from IRA credits," Anderson said.

The market has "taken an overly pessimistic view" on EOS Energy's (EOSE) near-term liquidity needs, the analyst said, but these can be addressed with existing funding sources and minimal additional shareholder dilution, even if not fully addressed by the pending Department of Energy loan.

Eos Energy (EOSE) "needs to secure more funding before it can capitalize on net zero fervor," Leo Imasuen writes in an analysis published on Seeking Alpha.