Q: ANYLISTS COVERING THIS STOCK, GIVE A VERY POSITIVE STRONG BUY. AM I MISSING SOMETHING. WOULD YOU KINDLY COMENT. THANKS
5i Research Answer:
ELVA is a manufacturer and developer of lithium-ion batteries, battery management systems and any battery-related products. The company’s growth has been solid in the last five years but also cyclical. On average, it grew its topline by around 54% each in the last five years.
The company is also expected to grow its topline by more than 50% over the next few years, and analysts expect the company to be EBIT-positive starting as early as next year. ELVA is a high-risk growth name with an interesting setup. The company could see a surge in interest as EV sales start to pick up again in the future. However, it is still a high-risk, speculative name with low liquidity. We feel investors should size the position conservatively.