Electrovaya has an upside of 143%, this analyst says

Roth Capital Partners analyst Craig Irwin maintained his “Buy” rating and US$14.00 target on Electrovaya (Electrovaya Stock Quote, Chart, News, Analysts, Financials NASDAQ:ELVA), arguing that a new $26-million battery supply agreement with Janus Electric improves visibility for growth in fiscal 2027.

In an Oct. 28 report, Irwin said the agreement will see Electrovaya supply lithium-ion battery systems for the conversion of Class 8 heavy-duty trucks from diesel to electric power.

“ELVA announced an initial $26M order from Janus for ELVA’s lithium-ion battery systems, which will be used in diesel-to-electric conversion of Class-8 heavy-duty trucks,” Irwin said. “The order is expected to cover initial demand for Janus products in the U.S. and Canada, where Janus has orders and commitments for 118 truck conversions.”

Each converted truck uses approximately 600 kilowatt-hours of Electrovaya batteries, with initial deliveries already underway. Irwin expects Janus’s battery-swapping model to create additional demand, since operators could require more than one battery system per truck. He said similar approaches have been adopted by electric truck manufacturers in China, while Tesla’s Semi represents a potential competitor in North American markets focused on reducing emissions.

As part of the agreement, Electrovaya invested $1.4-million in Janus, receiving 4.2 million shares and 6.3 million warrants to support the company’s North American expansion.

Irwin said Electrovaya’s recent business update indicated fiscal 2026 revenue of approximately $71-million, within management’s previous guidance of $70-million to $73-million.

“After the recent preannouncement of F4Q26 revenue in line, the focus shifts to the timing of initial Jamestown revenue and the shape of the FY27 growth trajectory,” Irwin said.

Electrovaya is advancing its manufacturing facility in Jamestown, New York, where battery module equipment has completed factory acceptance testing and cell manufacturing equipment testing remains underway. Irwin expects the facility to support a substantial increase in production as demand expands.

The company also appointed Kris Kuzniewski as vice-president of data centre sales, creating a dedicated position to pursue opportunities in AI and data centre infrastructure. Kuzniewski previously served as director of U.S. AI data centre sales at Sinexcel and has more than 15 years of business development experience in critical power and data centre markets.

Electrovaya expects to release its audited fiscal 2026 results in early December, marking its first financial reporting under U.S. generally accepted accounting principles as it transitions toward becoming a U.S. domestic filer.

Irwin left his financial estimates unchanged and plans to revisit them following the results. His US$14.00 target is based on 25 times estimated fiscal 2027 EV/Adjusted EBITDA, reflecting the company’s battery technology, customer demand and anticipated production ramp-up in Jamestown. He expects Electrovaya to generate Adjusted EBITDA of US$11.8-million on revenue of US$70-million in fiscal 2026, improving to Adjusted EBITDA of US$29.1-million on revenue of US$120-million in fiscal 2027.

-30-