ENX - Enovix rallies after Loop Capital says the company could grow to be a $80B lithium battery beast

Loop Capital started off coverage on Enovix Corporation ( NASDAQ: ENVX ) with a Buy rating.

The advanced silicon-anode lithium-ion battery development and production company could be worth $75B to $80B by the end of the decade in comparison to its current market cap of just under $3B, according to the firm.

Analyst Ananda Baruah said the bull case on Enovix ( ENVX ) is underpinned by the attractive $1.5B revenue funnel in place and the potential is much higher with production agreements in place with large vendors. Baruah also said that EVNX could be a M&A target from a major consumer player.

"ENVX is gearing up to deliver a very attractive financial model with strong revenue growth and normalized software-type operating margins,” Baruah wrote in a note to clients," noted Baruah.

Potential upside for EVNX includes penetration into AR/VR technologies, metaverse and electric vehicles.

Loop Capital has a price target of $50 on ENXX in comparison to the current price of $14.90 and post-SPAC range of $7.27 to $39.48.

The Seeking Alpha Quant Rating on Enovix is at Hold but has been tracking higher.

For further details see: