Electrovaya is a “Strong Buy”, Raymond James says

Electrovaya (Electrovaya Stock Quote, Chart, News, Analysts, Financials NASDAQ:ELVA) is gaining momentum as demand grows for lithium-ion batteries in material handling, with analyst Daniel Magder of Raymond James reaffirming a “Strong Buy” and $4.50 target in a May 15 note. Following a 40% year-over-year jump in revenue and fresh funding for its New York facility, Magder sees the company well-positioned for continued profitable growth.

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.

Magder said growth is accelerating. Electrovaya reported revenue of about $15-million after market close on May 14, slightly below Raymond James and street estimates of $15.9-million.

“Revenue was up ~40% y/y, highlighting the accelerating demand for its products from its entrenched customer base,” Magder said. “After receiving orders of over $25 mln during the quarter, the company is well-positioned to achieve their reaffirmed guidance of $60 mln in revenue for 2025. The company also reported adj. EBITDA of $2.0 mln for the quarter, up ~33% y/y, showing the inherent operating leverage within their business model.

Tariff impacts have been muted. By avoiding China in its supply chain, Electrovaya has largely avoided significant cost increases from U.S. tariffs.

“With a reliance on Korean and Japanese suppliers, we would still expect some impact on their gross margin, an impressive 31.1% in the quarter, in the near-term,” Magder said. “However, as the company continues to increase their topline, we believe they will develop additional pricing power, helping to mute the impact of any tariff-related increases to costs.”

Magder thinks that Electrovaya will post $9-million in Adjusted EBITDA on $64-million in revenue for fiscal 2025. He expects those numbers to improve to $18-million in Adjusted EBITDA on $103-million in revenue in fiscal 2026.

Magder said Electrovaya successfully closed its previously announced $51-million loan with the U.S. Export-Import Bank during the quarter, under the bank’s “Make More in America” initiative.

“Coincidentally, Electrovaya closed a $20 mln facility with BMO, rounding out their capital needs for the Jamestown buildout,” he said. “Post quarter, the company announced the start of battery system manufacturing at Jamestown, including placing $40 mln worth of capital equipment orders. With the uncertainty facing many customers given the Trump administration’s policy impacts, Electrovaya’s US-based manufacturing has positioned the company well and supports their growth plans.”

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