By Sam Boughedda
TD Cowen analysts believe Enovix Corp (NASDAQ:ENVX) is well-placed after the firm met with the company's CEO Raj Talluri and IR Charlie Anderson, where conversations centered on Dr.Talluri's experience, Gen2, and cap needs.
"We walked away with a positive bias as Dr. Talluri articulated confidence in the roadmap to Gen2 SOP with significant process improvements already evident," stated the analysts, who have an Outperform rating and a $25 price target on Enovix stock.
The analysts explained that battery assembly was likened to back-end semi-manufacturing - a straightforward part of the value chain - with "more tolerances v chips thus providing confidence in scale-up."
"Also topical was capital needs, and ENVX sees three options (gov, strategics, cap markets) with the goal being securing enough capital that materially offsets this year's spend (~$240MM)," the analysts added.
Speaking about Dr.Talluri specifically, the analyst said he "brings over 30 years of experience to ENVX, serving previously in SVP roles at Micron (NASDAQ:MU) within its Mobile Business Unit and Qualcomm's (NASDAQ:QCOM) IoT business where he also led product management targeting smartphones, tablets, and automotive markets."
"In prior roles, he found the upgrades around tech and processing within products were not fully utilized given the lack of battery performance, presenting a unique and important problem to be solved. Dr. Talluri felt ENVX was the most interesting given its product differentiation and manufacturing overlap with the semi-industry," added the analysts.