Oppenheimer Raises price Target on Energous (WATT) to $15 Following 2Q; Reiterates Outperform

August 15, 2016 8:36 AM EDT
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Price: $18.23 +1.67%

Rating Summary:
    5 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
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Oppenheimer reiterated an Outperform rating on Energous Corp (NASDAQ: WATT), and raised the price target to $15.00 (from $13.00), following the company's 2Q earnings report. WATT posted revenues of $182K engineering product development revenues. Total opex were $10.5M, slightly down Q/Q. GAAP EPS and non-GAAP EBITDA were ($0.62) and ($8.5M), compared to ($0.55)/($7.0M) forecasts.

Analyst Andrew Uerkwitz commented, "Energous reported 2Q16 results on 8/9 after the bell, and we had the opportunity to host Energous CEO Steve Rizzone at Oppenheimer's 19th annual Technology, Internet & Communications Conference. We had previously been concerned with WATT's cash balance/burn rate, but a $20M investment from Ascend Capital (1.6M shares @ $12.36, warrant for 1.6M strike $23) should alleviate pressure and facilitate the expansion of targeted potential licensees. With the expensive third-party chip development costs out of the way and first shipments expected late 4Q/early 1Q17, the next four quarters are set up nicely for shrinking losses on the way to management's expected 3Q17 CF breakeven. We raise our PT to $15 (from $13) and reiterate Outperform."

For an analyst ratings summary and ratings history on Energous Corp click here. For more ratings news on Energous Corp click here.

Shares of Energous Corp closed at $13.60 yesterday.

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