As previously reported, Janney Montgomery Scott downgraded Enovix (ENVX) to Neutral from Buy with a fair value estimate of $10, down from $22. Enovix announced a $100M equity offering after the close yesterday, one day after the Q3 earnings call, during which the company addressed concerns over its liquidity position by telling investors the company had “runway through 2026” and that it was focused on delivering on key milestones before raising additional funds, the analyst noted. While the dilution isn’t meaningful at approximately 5%, “we take issue with the timing given the conference call messaging,” says the analyst, who notes that additional capital is needed in early 2026 in the firm’s model but adds that “anything beyond 2025 feels like a challenge to forecast given lack of firm customer commitments.”
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