NEOV is up over 31% on volume exceeding 10 million shares, compared to its 800k daily average. Needham initiated coverage with a Buy rating and an $8 price target. The stock closed at $2.12 yesterday and is trading near $2.79.
The valuation centers on the Pendergrass, Georgia joint venture. NEOV holds an 80% stake in this facility. This moves the company from residential battery sales to grid-scale storage. The plant is designed to scale from 2 GWh to 8 GWh of domestic capacity, qualifying it for IRA tax credits.
Needham projects revenue will grow from $14 million in FY2026 to $657 million by FY2028. They expect EBITDA to move from a loss to a $99 million profit.
This is an early-stage stock carrying more risk than established energy storage companies. The upside depends on their ability to qualify for federal credits, secure orders, and increase production.
Not financial advice!