Design and Handling IP Creates a Moat for Electrovoya (ELVA)

Electrovaya Inc. (NASDAQ:ELVA) is one of the most promising small-cap industrial stocks under $50.

On December 18, Oppenheimer analyst Colin Rusch initiated coverage of Electrovaya Inc. (NASDAQ:ELVA). The analyst assigned a bullish rating to the stock with a price target of $14, which gives an upside of almost 87% from the current level.

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Rusch based his outperform rating on the market position of Electrovaya Inc. (NASDAQ:ELVA). As a leading platform for battery technologies and systems, he highlighted the company’s intellectual property in design, manufacturing, and handling, centered on its proprietary Infinity Battery Platform. Not only does it create a powerful moat, but it also offers a solid foundation to the business for becoming a critical supplier of long-life lithium-ion battery systems for autonomous mobile robots. Rusch believes the company is in a strong position to scale its presence within an expanding electric materials handling space. These factors make him hold a highly optimistic view of the stock.

As of the December 22 closing, consensus ratings remain favorable toward Electrovaya Inc. (NASDAQ:ELVA). All 5 analysts covering the company assigned Buy ratings, resulting in a consensus 1-year average price target of $9.90. This results in an upside potential of 32% from the current level.

Electrovaya Inc. (NASDAQ:ELVA) is a manufacturer of lithium-ion batteries and battery management systems. Their offerings focus on preventing climate change and have various applications, including electric transportation, energy storage, warehousing, and heavy-duty electric vehicles. They leverage solid-state battery technology covering both low and high voltage systems.

While we acknowledge the risk and potential of ELVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ELVA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.