Up 470% Over 52 Weeks: Should You Buy or Sell This Energy Stock?

GuruFocus.com
20 Jan

One of the pioneering players in zinc-based long-duration storage energy systems, Eos Energy Enterprises, Inc. (EOSE, Financial), has experienced a more than 470% surge in its stock price in the past 52-weeks due to the strong demand for energy solutions. Global Player said it met its revised 2024 revenue guidance of $15 million as its supply chain efficiencies and customer deliveries improved.

  • Warning! GuruFocus has detected 9 Warning Signs with EOSE.

Eos looks forward to continuing to grow its revenue at 10x as of today, which Eos estimates will reach $150 million to $190 million in 2025 from expanded production capacity and improved supply chain. CEO Joe Mastrangelo pointed to further ramp-up of the company's advanced manufacturing line as well as continuing efforts to secure critical financing and order customer expansion.

Eos also created an insurance program with Ariel Green that features performance guarantees and investment tax credit protection to increase bankability. However, these initiatives were highlighted by CFO Nathan Kroeker as they increase operational reliability and economic return for customers, explained Kroeker.

Cerberus is on pace to unlock further funding for the company by January 31, 2025, under Cerberus milestones, to land that money, which will continue to propel Solana forward. We expect to report full-year 2024 results in March.

Overall, analysts are a bit too cautiously optimistic about Eos Energy, given a consensus "outperform" rating. The stock's current 52-week high of $6 is in stark contrast to the mean price target of $5.3 that analysts have set, suggesting room for skepticism about valuation if the company continues on its promising growth track.

This article first appeared on GuruFocus.

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