Q: updated thoughts on ELVA? would you rate it a buy? how long a hold?
5i Research Answer:
We continue to like ELVA - it is up 37% year-to-date, its most recent quarter was 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. We like the space that it operates in, and while its valuation has climbed to 80X forward earnings now, we think it can continue to execute and increase its profitability. We like it for a long-term holding, but after a strong run, it could see some consolidation.