Has it run ahead of itself that is quite an increase in a very short period of time.
Should one wait for a retracement?
Thanks
Sheldon
ELVAs recent quarter was quite strong, with sales growth of 43% for the year and it also marked its first profitable fiscal year. It generated positive cash from operations, launched new products in robotics and energy storage, and management noted this was a strategic inflection point for the company. The stock saw a strong move on the day of earnings, and following earnings Oppenheimer initiated coverage at outperform with a $14.00 price target. It is a small name ($577M market cap), with a high valuation (65X forward earnings), but we feel it operates in a space that has a lot of structural tailwinds and investors are likely relieved by its recent profitability.
We could see it consolidate after this strong move, but it is at its 2021 highs, and we think a move above these levels could point to further sustained momentum.