12 Small Cap Stocks with High Upside Potential

7. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)

Market Capitalization: $1 Billion

Analyst Upside: 36.05%

No. of Hedge Fund Investors: 21

Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is one of the 12 Small Cap Stocks with High Upside Potential. On June 16, Eos Energy Enterprises, Inc. (NASDAQ:EOSE) closed $336 million in concurrent offerings of common stock and senior convertible notes.

This move is more than a capital raise as it offers financial flexibility to Eos Energy required to scale operations, aiming for long-term energy storage global demand. It allows the company to restructure key portions of its debt, materially reducing its cost of capital while improving its balance sheet. This transaction will result in almost $400 million in savings over the terms of Eos Energy’s debt.

“This was more than a capital raise – it strategically positions the Company to achieve our long-term objectives. Improving our capital structure provides the tools required to operationally position the Company for growth. A stronger balance sheet combined with an improved capital cost structure allows Eos to deliver for its customers and build long-term shareholder value,” said Joe Mastrangelo, Chief Executive Officer of Eos.

On June 9, Stifel’s analyst slightly reduced the price target on EOSE from $9 to $8.5, keeping its Buy rating on the stock. The analyst remains optimistic and highlights the company’s improvement of its balance sheet as a positive sign.

Eos Energy Enterprises, Inc. (NASDAQ:EOSE) designs, develops, and manufactures zinc-based energy storage solutions for utility-scale, microgrid, and commercial applications.