Stock market players have taken a good, hard look at the energy storage sector lately, and many like what they see. For sector member Eos Energy Enterprises (EOSE 7.00%) this was recently enhanced by a bullish update published by an analyst tracking its stock.
This greatly helped push Eos's shares up by more than 22% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
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An energized market
Before market open Wednesday, that pundit, B. Riley's Christopher Souther, made quite the dramatic change to his Eos price target. He cranked it 60% higher, from $5 per share to $8. That adjustment, significant as it was, didn't change his sentiment on the shares, however; he maintained his neutral recommendation on Eos.
Since analyst reports frequently aren't made public (at least not immediately), the reasoning behind Souther's change wasn't apparent.
That said, we can tease out reasons many market players and analysts are getting more bullish about the energy storage space in general. The ever-spiraling demand for more data delivered faster is increasing the hunger for more computing power. That, of course, needs actual power, which is why next-generation electricity delivery and storage solutions are in vogue.
Justifying more juice
Another major actor in this saga is artificial intelligence (AI). Although extremely useful when properly implemented, AI is quite the resource hog, necessitating far more processing power than preceding technologies. Again, this in turn requires a ramp-up in the juice it receives.
Current trends, then, are playing well into the hands of Eos and its fellow 21st-century energy solutions providers.
