Electrovaya has strong momentum, Roth says

Electrovaya (Electrovaya Stock Quote, Chart, News, Analysts, Financials NASDAQ:ELVA) powered through its ninth straight profitable quarter, and while Q2 numbers landed just shy of expectations, Roth Capital Partners is sticking with its “Buy” rating and 12-month price target $5.00, citing strong momentum, a growing backlog, and tariff-proof production ramping up in New York.

In his May 15 sales report on the company, Roth analyst Craig Irwin said he adjusted estimates for Electrovaya following the company’s F2Q25 results.

Despite the revisions, he stands behind both his previous rating and price target.

“We see a 10x multiple as fair for Electrovaya’s leadership in heavy-duty lithium-ion batteries and the longer-term growth outlook,” Irwin said. “Factors that could impede shares from reaching our price target could come from lumpy quarterly results as single orders or the timing of deliveries can have a material impact. Electrovaya is exposed to IP risks where management may need to defend the rights to its ceramic separator or other technology.

“Competition comes from both larger and smaller companies, where Electrovaya is larger than most lithium-ion forklift battery companies but smaller than conventional lead-acid producers. The company faces geographic risk from international shipping and materials sourced in Asia, as well as typical warranty and liability risk.”

Roth now expects Electrovaya to generate $9.6-million in Adjusted EBITDA on revenue of $67.0-million in fiscal 2025, rising to $21.0-million in Adjusted EBITDA on revenue of $105.0-million in fiscal 2026.

Irwin said the modest revisions to its estimates come after the company reported slightly weaker-than-expected Q2 results. Revenue of $15.0-million and Adjusted EBITDA of $2.0-million came in just under the firm’s forecast of $16.0-million and $2.1-million.

While slightly below expectations, the results showed growing traction in the material handling market and supported management’s decision to reiterate its full-year guidance.

“Shipment of around half of the Materials Handling packs into established facilities for a key customer marks strong early traction serving aftermarket retrofit applications,” Irwin said.

Irwin said the company is largely protected from tariffs because its Jamestown facility was built to support a North American supply chain. The company expects little impact from any future tariff changes.

“There should be no tariff impact as the Jamestown, NY, factory is now producing battery modules and should ramp cell production in 2H26,” he said. “The guide was reiterated, and we believe management is being conservative given certain distribution centres delayed installations in FY24.”

Electrovaya is a Canadian company that makes lithium-ion batteries for electric vehicles, energy storage, and industrial use. Its products are designed to be safe, long-lasting, and help reduce carbon emissions. The company is also working on solid-state battery technology and operates facilities in Canada and New York.

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