Amprius Technologies is undervalued, this analyst says
Roth Capital Partners analyst Chip Moore says Amprius Technologies’ (Amprius Technologies, Stock Quote, Chart, News, Analysts, Financials NYSE:AMPX) new defence grant supports the company’s capital-light domestic capacity ramp.
In a Sept. 28 update, Moore reiterated his “Buy” rating and US$22.00 target on Amprius.
Amprius was awarded a U.S. Department of War grant of up to US$74.8-million to retrofit an existing domestic EV battery line operated by a major South Korean manufacturer.
The converted line will produce NDAA-compliant, high-energy-density Amprius pouch cells for drone applications.
Moore said the grant follows about US$18-million of earlier strategic funding from the Defense Innovation Unit and strengthens Amprius’s position in domestic drone power systems.
“We continue to see potential for catalysts, including achievement of milestones, production qualification of new tolling capacity, and new product, customer, and partnership announcements,” Moore said.
Initial base funding is US$22.3-million, with the total conversion project estimated at about US$100-million, including in-kind contributions from Amprius and its South Korean partner.
Amprius will serve as prime contractor for the project, which largely involves replacing equipment to produce smaller pouch cells than those used in EVs.
Project completion is targeted for early 2028, with capacity expected to reach 12-million cells annually. Moore expects full capacity around the end of 2028.
Management estimates the line could add about US$150-million of incremental annual revenue at full capacity, with margins in line with current targets.
Moore said Amprius continues to take a prudent approach to scaling production while demand for its high-energy-density battery technology grows.
The company raised its fiscal 2026 revenue guidance for a second consecutive quarter with Q2 results, targeting at least US$140-million of sales and at least US$4.0-million of Adjusted EBITDA.
Amprius ended Q2 with US$74.5-million of cash and no debt.
Moore’s US$22.00 target is based on about nine times his 2028 revenue estimate.
“We favour the company’s technology and current market positioning, particularly in the context of broader defence and trade dynamics,” Moore said.
Moore expects Amprius to generate Adjusted EBITDA of US$4.1-million on revenue of US$140.7-million in fiscal 2026, improving to Adjusted EBITDA of US$21.3-million on revenue of US$205.8-million in fiscal 2027.
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Rod Weatherbie
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Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.