Enovix downgraded at TD Cowen following stock rally
Investing.com | Author Sam Boughedda
Published Jul 21, 2023 10:45AM ET
Enovix (ENVX) downgraded at TD Cowen following stock rally
Enovix (NASDAQ:ENVX) was cut to Market Perform from Outperform at TD Cowen Friday, with analysts lifting the price target to $20 per share.
The analysts told investors that the downgrade is based on the company's valuation, with the stock up 74% YTD and 61% in the last 18 trading days.
"While we remain constructive on the LT investment case, further outperformance remains predicated on Gen2 success that won't become apparent before 2Q24/3Q24," the analysts wrote.
"We remain fans of the tech and management team; however, at these levels we'd argue significant success is already baked into shares despite lingering questions," they added.
The analysts went as far as saying that even if they were to assume demand for ENVX batteries is unlimited, the company's value would still ultimately be constrained by the time required to stand up additional lines.
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