On Friday, EVE Energy Co Ltd (300014:CH) stock received an upgrade from Nomura/Instinet from Neutral to Buy, with an increased price target set at RMB45.00, up from the previous RMB38.00. The firm identified EVE Energy as a primary beneficiary of the ongoing momentum in the Energy Storage Systems (ESS) market.
EVE Energy has positioned itself as the second-largest supplier of ESS battery cells in the first quarter of 2024. The company is projected to have an ESS revenue contribution of 36% in the fiscal year 2024 forecast. Analysts have observed a conclusion to the destocking of ESS batteries, with prices expected to stabilize by the first half of 2024.
The company is also expected to see a resurgence in its consumer battery division. Analysts anticipate a likely restocking trend within the power tool sector, which should further contribute to EVE Energy's growth.
The upgrade reflects confidence in EVE Energy's market position and its potential to capitalize on industry trends. With the recovery of its consumer battery segment and the solid performance in the ESS sector, EVE Energy is poised for a positive trajectory in the upcoming financial year.
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