Shares of Energous Corporation (NASDAQ:WATT) were getting hammered today after the maker of wireless charging technology was downgraded by Oppenheimer. As of 12:43 p.m. EST, the stock was down 14.1%.
The research firm lowered its rating on Energous from outperform to market perform and removed its $15 price target. Analyst Andrew Uerkwitz said that he was unable to remain bullish on the company until it begins shipping product, which he expects it to start doing in the second quarter.
Above all, Uerkwitz expressed caution as the company is entering what he called the most "tenuous" months. Still, the note seem to be negative, only that the stock was fully valued until it successfully brings its product to market.
Shares of Energous had more than doubled last year as excitement for wireless charging grew, so Oppenheimer's downgrade, which seems to be partly based on valuation, seems justified. The sell-off may have been especially strong as Uerkwitz is one of just three analysts covering the stock.
Still, with wireless charging set to go mainstream, the stock has significant upside potential in the coming years. If Energous can successfully navigate the challenges ahead, including its product launch and Federal Communications Commission approval, the stock should easily overcome today's setback.
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