What happened
With a big government program advancing green technology in the works, now is a good time to be a next-generation battery maker particularly targeting the electric vehicle (EV) segment. Enovix (ENVX -2.99%) is one of the battery developers enjoying the ride, and on Wednesday its share price accelerated almost 10% higher thanks to a new and bullish analyst note.
So what
That morning, Oppenheimer prognosticator Colin Rusch reiterated his very positive take on Enovix's prospects. He is standing by his outperform (read: buy) recommendation on the stock, at a price target of $39 per share. That represents a very healthy 64% premium to the stock's current price, even after Wednesday's rise.
Rusch's move follows two days of investor meetings with a pair of top Enovix executives, COO Cam Daley and vice president of investor relations Charles Anderson. Following those meetings, the analyst was satisfied that Enovix "is continuing to make meaningful progress across multiple initiatives."
Rusch added, "On the customer front, we see Enovix harmonizing customer diversity with the potential to become a strategic supplier to those customers for both wearables and EVs."
The prognosticator is also cheered by the fact that Enovix aims to ramp up its production capabilities, and is considering how it can harness government support in this effort.
Now what
Despite its name, much of the government's recently passed Inflation Reduction Act is actually a big program to support the development of green technologies like EVs. Companies like Enovix, then, are in the right time and in the right place to take advantage not only of this, but of the general drive toward EV development and adoption.
