On Wednesday, Dragonfly Energy Corp. (NASDAQ:DFLI) saw its price target increased to $1.50, up from the previous $0.90, while its stock rating remained at Buy. The adjustment, made by the Roth/MKM analyst, follows the company's first-quarter results and reflects a positive outlook despite current market challenges.
The firm acknowledges the difficulties in Dragonfly Energy's core market but considers these challenges as already factored into the stock's pricing. The new price target is supported by an expected gradual recovery into the next year. Additionally, the firm highlights potential growth opportunities in adjacent niche energy storage sectors, such as auxiliary power for trucks, marine, and off-grid applications.
Dragonfly Energy's proprietary dry deposition technology is also noted as an undervalued asset with the potential for long-term gains. The technology, which is currently not reflected significantly in the company's valuation, is seen as a possible driver for future growth.
The firm's stance on Dragonfly Energy remains optimistic, with an emphasis on the company's ability to navigate its core market's headwinds while capitalizing on emerging opportunities in related fields. The raised price target suggests confidence in Dragonfly Energy's strategic direction and technological innovation.
InvestingPro Insights
Dragonfly Energy Corp. (NASDAQ:DFLI) has been navigating a volatile market landscape, as indicated by recent metrics from InvestingPro. With a market capitalization of $74.12 million, the company's stock shows a high price volatility, which is important for investors to consider. The P/E ratio currently stands at -2.8, reflecting challenges in profitability, particularly as net income is expected to drop this year.
InvestingPro Tips suggest that Dragonfly Energy is quickly burning through cash and has not been profitable over the last twelve months, which aligns with the -16.82% return on assets. However, it's noteworthy that despite a -58.16% one-year price total return, the company has experienced a significant price increase in shorter time frames, with a 173.33% one-month price total return and a 146.0% three-month price total return.
For investors seeking a deeper analysis, InvestingPro offers additional insights and tips on Dragonfly Energy. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 15 InvestingPro Tips that could further inform investment decisions regarding Dragonfly Energy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.