Thomas Boyes, an analyst from TD Cowen, maintained the Hold rating on ESS Tech (GWH – Research Report). The associated price target was lowered to $2.50.
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Thomas Boyes has given his Hold rating due to a combination of factors influencing ESS Tech’s current performance and future prospects. On the positive side, the company is beginning to gain traction with its Energy Base product, securing a 50MWh project and bidding on significant additional projects worth $400 million over the past two quarters. Additionally, ESS Tech has completed the delivery of two Energy Center systems to a customer in Florida, and there is visibility to competitive pricing for future projects.
However, there are notable challenges that temper the outlook. The company reported lower-than-expected revenue this quarter, primarily due to ongoing delays with an Australian customer who has not secured necessary funding. Furthermore, ESS Tech’s capital raising efforts are incomplete, which is crucial for sustaining operations until profitability is achieved. The lack of guidance on financials for the fiscal year 2025 adds uncertainty, and potential delisting from the NYSE due to low market capitalization remains a risk. These factors contribute to the Hold rating, reflecting both the opportunities and the uncertainties facing ESS Tech.
Boyes covers the Industrials sector, focusing on stocks such as Eos Energy Enterprises, PureCycle Technologies, and ESS Tech. According to TipRanks, Boyes has an average return of -30.2% and a 17.31% success rate on recommended stocks.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $2.50 price target.