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Enovix Stock Surges 19% on Receiving a Buy from Loop Capital

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ENVX stock surged nearly 19% in pre-market trading after the company received a new Buy rating from an analyst, Ananda Baruah. The company even posted better-than-expected second-quarter results on August 10.

Shares of Enovix Corporation (NASDAQ: ENVX) surged 19% in pre-market trading today after Loop Capital analyst Ananda Baruah initiated coverage of the stock with a Buy rating. Baruah assigned a $50 price target to ENVX stock, which implies a humongous 209% upside potential to current levels.

Enovix engages in advanced silicon-anode lithium-ion battery development and production. Enovix is currently focused on using its 3D cell architecture to develop a high-energy battery for category-leading mobile devices. The company is also developing its proprietary 3D cell technology for electric vehicles (EVs) and energy storage end markets.

Enovix currently has a market capitalization of $2.53 billion. As per Baruah, this market cap could reach $75 to $80 billion by 2030. The analyst is encouraged by the company’s solid $1.5 billion revenue stream. He believes this could grow much higher since the company has production agreements with several large vendors. According to Baruah, ENVX could be a good M&A target for a major consumer player.

Furthermore, Baruah noted that ENVX could enter the attractive augmented reality (AR), visual reality (VR), metaverse, and EV space in the future.

Yesterday, Enovix reported solid second-quarter results, beating both top and bottom lines. Revenues of $5.10 million outpaced the consensus by $4.78 million. Similarly, a diluted loss of $0.18 per share came one cent better than the analyst estimated loss of $0.19 per share.

Is Enovix a Good Investment?

On TipRanks, ENVX stock commands a Strong Buy consensus rating with four unanimous Buys. The average Enovix price target of $20.50 implies 26.9% upside potential to current levels. Meanwhile, the stock has lost 40.5% so far this year.

Moreover, corporate insiders who know the exact financial health of a company are also Very Positive about Enovix. As per TipRanks’ Insider Trading Activity tool, corporate insiders bought $3.9 million worth of EVNX stock in the last quarter.

Ending Thoughts

Enovix is in a nascent stage of development. Battery manufacturers are at the crux of the green energy shift. The company’s performance is set to accelerate once it has launched the promising 3D cell technology for all of the lucrative end markets. Also, insiders and analysts are highly optimistic about the stock’s trajectory, making it a good investment choice.

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