ESS Tech (GWH – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Jeff Osborne from TD Cowen downgraded the rating on the stock to a Hold and gave it a $3.00 price target.
Jeff Osborne has given his Hold rating due to a combination of factors affecting ESS Tech’s current and future performance. The company is undergoing a strategic shift and has delayed its profitability timeline, which has led to a downgrade from a Buy rating. Additionally, ongoing funding delays and the transition to the new Energy Base offering are expected to take time, contributing to the cautious outlook.
Furthermore, the company is in the midst of a CEO search and is facing capital raising challenges, along with a delisting notice from the NYSE, which adds to the uncertainty. While there are positive developments, such as achieving breakeven on certain offerings and the potential of the Energy Base product, the lack of guidance for FY25 and the “going concern” language in financial statements highlight the risks. These factors suggest that the stock is likely to remain range-bound in the near term, prompting the Hold rating.
In another report released yesterday, Canaccord Genuity also maintained a Hold rating on the stock with a $3.00 price target.