CIBC Cuts Rating, Price Target On Electrovaya
Wednesday, January 25, 2022 10:21 AM

CIBC World Markets Inc. downgraded its rating on Electrovaya Inc.(TSX:EFL.TO) and slashed its price target on the battery systems maker to C$1 from C$5.

Michael Willemse, an analyst at CIBC, cut his rating to "SP from SO-S", saying Chrysler's uncertainty is stifling Electrovaya's EV aspirations.

Continued challenges in Europe and a focus on exploring diesel engines for larger vehicles suggest a much lower probability that Fiat/Chrysler will make the required investments to commercialize the Dodge RAM PHEV or Chrysler Town & Country PHEV test programs over the next few years, Willemse said.

While Willemse still believes Electrovaya is well positioned to eventually benefit from the introduction of a new electric vehicle program, he now sees the growing stationary grid market as the main initial revenue driver for the company going forward.

"If commercialized, we believe the RAM pickup would have been one of the more successful EV platforms in NA," Willemse wrote.

Canada-based Electrovaya is engaged in the development of advanced battery and battery systems for the transportation, electric grid stationary storage and mobile computing end-markets.

On Wednesday, the stock dropped 2.3 percent to 84 Canadian cents.