Buy this lithium battery stock for a 200% return: Loop Capital

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Enovix Corp (NASDAQ: ENVX) is trading up on Wednesday after a Loop Capital analyst said the lithium battery company could be worth up to $80 billion by the end of the decade.  

Enovix Corp could be a $50 stock

That’s a rather bold call considering Enovix went public only last year and has a market cap of just $2.44 billion at the time of writing.

Still, Ananda Baruah says the stock is a “buy” with upside to $50 a share that represents a more than 200% upside from here. In his note to clients, the analyst noted:

Enovix Corp is gearing up to deliver a very attractive financial model with strong revenue growth and normalised software-type operating margins.

He dubs the lithium stock a great way to play the future technologies, including AR/VR, the metaverse and electric vehicles. For the year, Enovix is down more than 40%.

What else could drive upside moving forward?

Baruah likes the Nasdaq-listed firm for its $1.50 billion revenue funnel. More importantly, though, he sees a much higher potential on its production agreements with large vendors.

Other than that, a takeover (at some point) by a major consumer company could also boost shareholder value, he concluded. Late last month, Enovix partnered with EDOM Technology to expand its Pan-Asian distribution coverage.

The California-based company that designs and manufactures next generation 3D Silicon Lithium-ion batteries is scheduled to report its fiscal Q2 results today, after the bell. Consensus is for it to lose 17 cents a share (up 19% YoY) on $0.32 million in revenue.

Each of the other five Wall Street analysts who cover Enovix also have a “buy” rating on the stock.

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