By Liz Moyer
Investing.com -- Lithium batteries are coming into their own, and that is a reason to buy shares of Enovix Corp (NASDAQ:ENVX) and Dragonfly Energy Holdings Corp (NASDAQ:DFLI), according to analysts at Canaccord Genuity.
The firm initiated coverage on the stocks as Buys, with a price target of $20 on Enovix and $15 on Dragonfly Energy.
Enovix calls itself a leader in advanced silicon-anode lithium-ion battery development. Dragonfly makes lithium-ion deep cycle batteries, which it says are displacing lead acid batteries in vehicles, vessels and material handling.
Canaccord analysts said in a note that batteries will solve renewables’ intermittency problems, “not to mention power future mobility and animate our increasing number of power-hungry devices.”
The analysts said the energy systems revolution of today has parallels in the late-1990s revolution in communications. The burgeoning battery industry offers “high-reward endeavors but not without risk,” they said.
They call Enovix a Buy because it has “active engagements” with six mega-cap technology companies, a contract with the Army for an estimated $350 million a year, and a cooperation agreement with a large-cap electronics maker.
They also note Dragonfly’s partnership with RV-giant Thor, which made a strategic investment in the battery maker of about $15 million last year.
Shares of Enovix were up 0.4% on Wednesday, while shares of Dragonfly were down 1.5%.