On Monday, Oppenheimer maintained its Outperform rating and $14.00 price target for Amprius Technologies (NYSE:AMPX), a company specializing in lithium-ion batteries with high energy density. The firm's reiteration follows Amprius' announcement of sales agreements exceeding $20 million for light-duty vehicle applications, expected to be fulfilled by mid-2025. These new sales are in addition to a previously announced 2GWh Letter of Intent (LOI) with a Fortune 500 company.
The company has recently established contract manufacturing capabilities, which are anticipated to scale up to 500MWh per year for its SiCore product line. This expansion is seen as a critical step towards Amprius Technologies' path to profitability, especially as it ramps up capacity for another product line, SiMaxx.
Oppenheimer highlighted the significance of the company's rapid progress in product and manufacturing qualification, suggesting that it could lead to potential further contracts. The firm's analyst expressed confidence in the company's strategy, noting the aggressive growth in sales.
The sales agreements and the LOI represent significant milestones for Amprius Technologies as it continues to advance in the competitive battery market. The company's ability to secure such contracts is a testament to its technological advancements and strategic capacity expansion.
In other recent news, Amprius Technologies has secured contracts worth over $20 million to supply high-performance cells for Light Electric Vehicle applications, with shipments expected to commence in 2024. The company also signed a Letter of Intent with a Fortune Global 500 company, indicating strong customer commitment to its technology. Amprius has expanded its manufacturing capabilities, working with several contract manufacturers in Asia to scale up production.
The company reported a 105% year-over-year increase in its second-quarter revenue, reaching $3.3 million. However, it also disclosed a net loss of $12.5 million, primarily due to preconstruction costs for a new Colorado facility and increased operating expenses. The board of directors also saw changes, with the resignation of Justin Mirro and Mary Gustanski, and the appointment of Livingston "Tony" Satterthwaite.
Financial services firm Oppenheimer has adjusted its price target for Amprius from $15.00 to $14.00, while maintaining an Outperform rating. Amprius has also received a notice from the New York Stock Exchange regarding non-compliance with listing standards, but has expressed intent to rectify the deficiency within the given six-month period.
InvestingPro Insights
As Amprius Technologies (NYSE:AMPX) works towards profitability and scales up its operations, real-time data from InvestingPro provides a deeper understanding of the company's financial health and market position. With a market capitalization of approximately $98.72 million, Amprius is navigating a challenging phase, reflected in its negative P/E ratio of -2.56. Despite the substantial revenue growth reported over the last twelve months, with an increase of 216.99%, the company's gross profit margin stands at a concerning -153.77%, indicating costs outweighing revenue in that period.
InvestingPro Tips indicate that Amprius holds more cash than debt, which is a positive sign for liquidity, and analysts expect sales growth in the current year. However, the company is also quickly burning through cash, and analysts have revised their earnings downwards for the upcoming period. Additionally, Amprius does not pay a dividend, which may influence investor decisions, especially those looking for income-generating investments. For investors seeking a comprehensive analysis, there are over 17 additional InvestingPro Tips available, offering insights into Amprius Technologies' financials and market performance.
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