DA Davidson cuts Ads-Tec Energy to Neutral on muted communication, cash burn

As previously reported, DA Davidson analyst Matt Summerville downgraded Ads-Tec Energy to Neutral from Buy with a price target of $5, down from $10. The company last formally reported financial results back in September 2022 covering the 6-month period ending June 30, 2022 when it also withdrew guidance and indicated that supply chain challenges would lead to material revenue pushouts into 2023, the analyst tells investors in a research note. Communication has since been generally muted, particularly with respect to its efforts to scale operations within North America, DA Davidson adds, stating that given its cash burn rates, the company may need to raise capital amidst a challenging interest rate and market overall environment.