Analyst Explains Why They Upgraded Their Rating on Energy Focus (EFOI)

By Carrie Williams

H.C. Wainwright analyst Amit Dayal upgraded Energy Focus (EFOIResearch Report) to Buy today and set a price target of $2.75. The company’s shares closed last Monday at $0.43, close to its 52-week low of $0.38.

Dayal wrote:

“We are upgrading our rating on Review based on several new developments over the past few months including: (1) the return of former CEO, James Tu, as the new CEO, under whom the company had dominated the military market and began penetration into the commercial segment; (2) expectations of margin and revenue improvements; (3) reorganization of the sales force under the newly appointed (4) improvements in inventory management and component sourcing to make products more price competitive in the market; and (5) anticipated new product launches over the next few months. In line with our rating change, we are establishing a $2.75 price target for the company. Please see our valuation section for assumptions on our projections. Key takeaways.”

According to TipRanks.com, Dayal is a 3-star analyst with an average return of 1.9% and a 43.5% success rate. Dayal covers the Industrial Goods sector, focusing on stocks such as Advanced Emissions Solutions, Inc., Ballard Power Systems, and Capstone Turbine Corp.

Currently, the analyst consensus on Energy Focus is a Moderate Buy with an average price target of $2.75.

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The company has a one-year high of $2.30 and a one-year low of $0.38. Currently, Energy Focus has an average volume of 555.2K.

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Energy Focus, Inc. engages in the design, development, and manufacture of energy-efficient lighting systems. It operates through the marketing and sale of commercial, industrial, and military maritime lighting products and research and development services. The company was founded in 1985 and is headquartered in Solon, OH.