Enovix Set To Meet Q4 Expectations, Eyes Smartphone Battery Breakthrough: JP Morgan

JP Morgan analyst Bill Peterson reiterated an Overweight rating on the shares of Enovix Corp ENVX with a price forecast of $15.00.

Enovix will release financial results for the fourth quarter on February 19, 2025.

The analyst anticipates fourth-quarter results to meet expectations, along with positive commentary regarding customer discussions, order pipeline, and positioning in light of tariffs and geopolitical factors.

Additionally, an update on the ongoing CFO search is expected. The analyst’s forecast predicts an adjusted EBITDA loss of -$19.8 million (compared to the Street estimate of -$22.9 million and the guidance of -$19 million to -$25 million).

The stock is likely to respond favorably to announcements regarding the progress of EX-2M product development, optimization of Fab-2 in preparation for mass production in 2026, and advancements in product qualification.

The analyst recalled that management has stated if Enovix can deliver battery samples to its first customers by second-quarter 2025, they may secure an order by third-quarter 2025 for a fourth-quarter 2025 ramp in smartphone production.

The analyst also expects management to address tariff impacts, reinforcing that Enovix is well-positioned as a non-Chinese battery supplier with a diversified supply chain.

Despite the elevated short interest, it has receded from previous highs, and the analyst remains confident in Enovix’s ability to execute its plans.

This confidence is driven by strong management, transparency, and a robust demand pipeline, although the analyst recognizes the competitive risks, especially with smartphone customer qualifications not expected until well into 2025.

Enovix is strategically positioned to secure design wins and achieve substantial revenue growth in the years ahead, leveraging the performance and safety benefits of its products, said the analyst.

Although potential risks include challenges in ramping up production to meet demand and limited expansion into the EV battery market, the analyst notes Enovix is well-equipped to capture significant market share and navigate these challenges successfully.

Price Action: ENVX shares are trading higher by 4.32% at $12.07 at the last check Thursday.

Photo: Piotr Swat via Shutterstock.