Solid Power (SLDP – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Chris Pierce from Needham reiterated a Buy rating on the stock and has a $2.00 price target.
Chris Pierce has given his Buy rating due to a combination of factors that highlight Solid Power’s strategic positioning and market potential. The company is seen as a well-capitalized option in the burgeoning solid-state battery sector, which is gaining momentum despite challenges in the broader electric vehicle adoption landscape in the U.S. Solid Power is strategically focusing on its sulfide-based electrolyte solution, choosing not to compete directly with its customers in cell development, which aligns with its consistent messaging following leadership changes.
Despite some uncertainty around this strategic pivot, the decision is viewed positively as it leverages industry trends. The $2 price target set by Chris Pierce is based on a valuation model that considers expected growth in global electric vehicle sales and the market share for solid-state batteries, applying a 20% discount rate to future earnings projections. This approach underscores the potential for Solid Power to capitalize on the increasing demand for advanced battery technologies.
According to TipRanks, Pierce is an analyst with an average return of -18.0% and a 30.38% success rate. Pierce covers the Consumer Cyclical sector, focusing on stocks such as Blue Bird, Carvana Co, and CarMax.