Oppenheimer: If Energous Can Execute, 'There Is Considerable Upside Potential'

Energous Corp (NASDAQ: WATT) is quickly becoming one of Wall Street's most hotly debated stocks as the company's wireless charging technology platform is unproven yet has massive implications if it's embraced by the market.

The Analyst

Oppenheimer's Andrew Uerkwitz maintains a Perform rating on Energous' stock with no assigned price target.

The Thesis

Energous achieved a major milestone in its history after the U.S. Federal Communications Commission approved its wireless charging solution, Uerkwitz highlighted in a note. But looking ahead, the company now needs to execute on its product and take advantage of its very early share and lead. The company needs to get a product out into the market even if at a low volume and then commit R&D dollars to improve its product. Energous then needs to secure and build on a large OEM relationship to bring high volume of products to the market.

"We don't want to get ahead of our skis, but recognize that with execution, there is considerable upside potential," Uerkwitz said.

Looking forward to 2018, Energous should show a revenue of $3.9 million and then materially grow in 2019, the analyst said. Under a bull case scenario, the company should generate nearly $400 million in revenue by 2021 assuming it captures less than 20 percent of the market.

Bottom line, it's easy for investors to get ahead of themselves and while the FCC announcement is a notable milestone, there are many steps and improvements the company needs to make before recommending the stock.

Price Action

Shares of Energous were trading lower by more than 5 percent Friday morning.

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