Morgans has pulled back its rating for Novonix to Hold from Speculative Buy. The target price has remained unchanged at $1.33.
The downgrade comes in response to a sharp rally in the share price, which the analysts believe is due to optimism towards EVs and new batteries following the election of Joe Biden as president of the US.
Earnings estimates have been reduced due to delays to the company’s contract with Samsung. While the company offers high growth potential, stockbroker Morgans points to some uncertainty given it’s still in the early stages of development.
Target price is $1.33.Current Price is $1.69. Difference: ($0.36) – (brackets indicate current price is over target). If NVX meets the Morgans target it will return approximately -27% (excluding dividends, fees and charges – negative figures indicate an expected loss).