Enovix CEO hinted at second smartphone agreement, says William Blair

William Blair keeps an Outperform rating on Enovix after a hosting a meeting with CEO Raj Talluri. The analyst is “impressed” with the speed of the buildout, sophistication of the equipment, and the size of the operation at the company’s Malaysia grand opening ceremony. Talluri also hinted a second smartphone maker customer is close to signing a joint development agreement, the analyst tells investors in a research note. The firm says that while there have been investor concern the CEO registered to sell shares in a 10b5-1 plan, Talluri announced he has not sold any shares and canceled the 10b5-1 plan. Blair expects the “choppiness” in the stock’s trading to remain, saying Enovix is an execution story with high short interest. However, with each milestone achieved, “the story de-risks further,” it adds.