Post Amazon deal, is Electrovaya still a buy?

Roth Capital Partners analyst Craig Irwin says investors should look closely at Electrovaya’s (Electrovaya Stock Quote, Chart, News, Analysts, Financials NASDAQ:ELVA) Amazon agreement, given the potential value of its battery technology for energy storage and robotics.

In a July 15 update, Irwin reiterated his “Buy” rating and $20.00 target on Electrovaya.

Electrovaya announced a commercial agreement with Amazon to deploy its Infinity Battery Technology at Amazon data centres and general operations. The companies also plan to explore additional uses in energy storage and robotics.

As part of the agreement, Amazon will receive 10-year warrants to buy up to 13.9 million Electrovaya shares at $8.56 per share, representing 20% of the company’s post-warrant shares outstanding. Of those, 5.5 million shares vest immediately, with the balance vesting if Amazon completes $280-million in future orders.

Irwin said Electrovaya has supplied Amazon with batteries for forklifts and robots for about 10 years, making Amazon one of the most experienced customers for Electrovaya’s Infinity cells.

The analyst said Electrovaya’s energy storage system can discharge at more than 2.5C, compared with other products at C/2, allowing smaller batteries to provide 15 to 20 minutes of peaking power service.

Irwin said energy storage systems made at Electrovaya’s Jamestown, N.Y., facility should be materially cheaper on a dollar-per-kilowatt basis and eligible for the 40% investment tax credit.

He said management is likely to move conservatively, but the key question is when Electrovaya announces an expansion and whether it will be three to five times the current plant capacity of about $125-million.

Irwin said he does not expect upside from fiscal Q3 2026, given choppy market conditions in the June quarter tied largely to geopolitical events. He left his estimates unchanged.

Irwin expects Electrovaya to generate Adjusted EBITDA of $16.8-million on revenue of $83.0-million in fiscal 2026, improving to Adjusted EBITDA of $40.3-million on revenue of $150.0-million in fiscal 2027.

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