On Tuesday, Oppenheimer maintained its Outperform rating on shares of Amprius Technologies (NYSE:AMPX) with a steady price target of $14.00. The firm's positive stance comes in light of Amprius's recent pre-announcement of revenue and EBITDA exceeding expectations. The company has started to reap the benefits of its available contract manufacturing capacity, which is aiding the sales ramp-up for its SiCore product line.
According to the firm, the manufacturing capacity is yielding a positive gross profit for Amprius even at lower revenue levels, which is contributing to a slower rate of cash burn for the company. Oppenheimer also notes that Amprius has secured sufficient qualified capacity to reach a cash flow breakeven point from operations and is actively expanding its SiCore customer base.
The collaboration with the US Advanced Battery Consortium is highlighted as a key factor in the company's revenue growth for the quarter. The firm's analyst expressed confidence in the company's trajectory, citing progress in the scale-up of its SiMaxx technology and concrete steps being taken towards achieving profitability.
Amprius Technologies' engagement with the US Advanced Battery Consortium continues to be a significant element in the company's strategy, contributing to its financial performance. Oppenheimer's outlook reflects a belief in the company's potential for growth and profitability in the near future.
In other recent news, Amprius Technologies has seen significant shifts in its corporate structure and leadership, with Amprius Holdings dissolving and distributing over 57 million shares of common stock, leading to changes in the company's ownership structure.
Moreover, Amprius Technologies has secured sales agreements exceeding $20 million for light-duty vehicle applications, expected to be fulfilled by mid-2025, and has entered into a development contract with a Fortune 500 company to create a high-energy SiMaxx™ pouch cell.
Financial firms Truist Securities has shown confidence in Amprius, raising its price target and maintaining positive ratings. However, Amprius reported a second-quarter revenue of $3.3 million, a 105% year-over-year increase, and a net loss of $12.5 million due to preconstruction costs and increased operating expenses.
Lastly, Amprius received a notice from the New York Stock Exchange regarding non-compliance with listing standards, but has expressed its intent to rectify the deficiency within the given six-month period. These are the recent developments for Amprius Technologies.
InvestingPro Insights
Amprius Technologies' recent performance aligns with several InvestingPro Tips and metrics, providing additional context to Oppenheimer's optimistic outlook. According to InvestingPro data, AMPX's revenue growth has been impressive, with a 216.99% increase over the last twelve months as of Q2 2024, and a 104.96% quarterly growth in Q2 2024. This robust growth supports Oppenheimer's observation of the company's sales ramp-up for its SiCore product line.
However, it's important to note that despite the strong revenue growth, AMPX is currently not profitable, with a negative gross profit margin of -153.77% over the last twelve months. This aligns with an InvestingPro Tip indicating that the company suffers from weak gross profit margins. Yet, Oppenheimer's report suggests that the manufacturing capacity is yielding positive gross profit at lower revenue levels, which could signal an improving trend.
Another relevant InvestingPro Tip mentions that AMPX holds more cash than debt on its balance sheet, which could provide financial flexibility as the company works towards profitability. This solid cash position may support Oppenheimer's view on the company's slower cash burn rate and its path to cash flow breakeven.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for AMPX, providing a deeper understanding of the company's financial health and market position.
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