Canaccord Genuity lowers target price on Invinity Energy Systems

(Sharecast News) - Canaccord Genuity lowered its target price on battery manufacturer Invinity Energy Systems from 40p to 33p on Tuesdsay after the AIM-listed firm issued revised guidance for its 2026-28 commercial pipeline and project grant income.

Canaccord Genuity said Invinity had moved its numbers "materially to the right" after four months of slow order flow, plus one customer facing implementation challenges on existing projects.

The Canadian bank noted that Invinity's cost reduction program "continues at pace", ahead of management expectations, and said it understands that the company now expects to be able to profitably deliver large-scale Endurium flow batteries at roughly $250 per kilowatt hour from 2028, a "dramatic reduction" and at a "highly cost-competitive" price when compared to lithium-ion.

"We are revising forecasts accordingly and presenting 2028 forecasts for the first time; this is the first year UK LODES work is expected to land; a project update from DESNEZ is expected within the next six weeks. Cash flow, whilst still negative, looks likely to allow cash to remain positive through this year and most likely through 2027E," said Canaccord, which has a 'buy' rating on the stock.

"2025 results continue to be expected before the end of June. We are revising our target to 33p (was 40p) given the lower near-term earnings."

Reporting by Iain Gilbert at Sharecast.com

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