On Wednesday, Roth/MKM began coverage on shares of Flux Power Holdings (NASDAQ:FLUX), an industrial lithium-ion battery producer, with a Buy rating and a price target of $10.00. The company is recognized for its significant presence in the lithium-ion forklift battery market, boasting approximately a 30% market share.
Flux Power's offerings include a comprehensive UL-certified product portfolio that not only serves the forklift markets but is also expanding into airport ground service equipment (GSE) and standby power sectors. The company's recent performance has been bolstered by its GSE segment, which helped offset a period of softness in the forklift market.
The firm commended Flux Power for its scale, engineering support, and adoption of new technologies, which set it apart from its competitors. According to the analyst, these attributes contribute to the company's competitive edge in the industry.
Looking ahead, the analyst anticipates a rapid return to growth for Flux Power, which is expected to drive the company towards sustained profitability. This optimistic outlook is based on the company's strategic positioning and its ability to capitalize on market opportunities.
The new price target of $10.00 reflects the firm's confidence in Flux Power's growth trajectory and its potential for increased market penetration in its various segments. The Buy rating suggests that the firm sees a favorable investment opportunity in the company's stock.
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