Is Now The Time To Buy Eos Energy Amid $400M DOE Loan And Project AMAZE? Analyst Weighs In

Guggenheim analyst Joseph Osha upgraded Eos Energy Enterprises Inc EOSE to Buy from Neutral with a price target of $10.

The analyst is bullish on the company receiving a $400 million conditional loan commitment from the Department of Energy. 

The company launched Project AMAZE, American Made Zinc Energy, a $500 million planned expansion to build 8 GWh of clean energy storage production capacity.

The analyst believes EOSE’s path to success still includes challenges, even with the conditional commitment given the high competition and the absence of display of capability to manufacture its product competitively at scale. 

Nevertheless, the analyst believes EOSE's product portfolio is better than any other non-lithium-ion technology provider and expects the company to benefit from the opportunity for a need for long-duration energy storage technology in the market.

Osha revised estimates for revenue and EPS loss to $271.8 million (from $237.5 million) and $(0.78) from $(1.03) for FY24 and $628.3 million (from $521.3 million) and $0.14 (from $(0.46)) for FY25.

The analyst has raised FY23-FY25 estimates on a more rapid production ramp as the company is less constrained by funding issues. Osha expects EOSE shipping 1.2GWh in 2024, 2.6GWh in 2025, and 5.2GWh in 2026.

Also, B.Riley Securities upped the price target to $5 from $4 while maintaining a Neutral Rating.

Stifel increased the target to $15 from $13 and reiterated a Buy rating. 

Price Action: EOSE shares are trading higher by 22.5% at $3.98 on the last check Friday.