ESS Tech (GWH – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst George Gianarikas from Canaccord Genuity maintained a Hold rating on the stock and has a $1.25 price target.
George Gianarikas has given his Hold rating due to a combination of factors concerning ESS Tech’s recent performance and future prospects. The company has shown a significant revenue increase in the first quarter and is making strides towards non-GAAP gross margin profitability. Additionally, ESS Tech’s collaboration with Honeywell and a new contract with Nigeria’s Sapele Power are positive indicators. Gianarikas recognizes the growing interest in long-duration energy storage and the company’s potential, underpinned by partnerships with influential entities such as Honeywell and Softbank, which could provide substantial resources.
However, the rating also reflects caution due to the competitive landscape in the energy storage sector and the array of technology options available to customers, which adds uncertainty to ESS Tech’s position in the market. ESS Tech’s first-quarter results fell short of expectations, with both revenue and adjusted EBITDA losses being more significant than anticipated. While management has expressed confidence in significantly increasing revenue, the lack of specific guidance and the recent cash burn, despite a commitment to reduce it, contribute to the uncertainty that warrants a Hold rating at this time.
GWH’s price has also changed moderately for the past six months – from $1.160 to $0.784, which is a -32.41% drop .
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
ESS Tech (GWH) Company Description:
ACON S2 Acquisition Corp is a blank check company.
