Liberum recently highlighted Ilika PLC (AIM:IKA, OTCQX:ILIKF)'s significant advancements in its Goliath and Stereax divisions in an extensive research note.
According to analysts, these developments mark notable milestones for Ilika, reflecting its solid progress and potential in the high-growth sectors it operates in.
This optimism is further bolstered by Ilika's financial performance, which aligns closely with Liberum's forecasts.
Ilika’s revenue guidance for the first half of 2024 stands at £1.3 million, surpassing the previous year's figures and meeting expectations.
Ilika's EBITDA loss shows a positive trend, and its cash position remains robust, indicating a stable financial footing, said Liberum
Cirtec collaboration: A strategic move
Ilika’s partnership with Cirtec, a key player in the industry, has been a strategic move for the company.
This collaboration involves the transfer of Stereax battery production technology and has led to significant de-risking of Ilika's mm-scale product offerings.
The agreement includes a 10-year manufacturing license, with Cirtec gaining exclusive rights in the medical devices sector.
It is a crucial step towards Ilika's commercialization plans, with an update expected in early 2024.
Analysts said: “With Stereax on track for commercialisation alongside Cirtec, increased focus appears to have turned to Ilika’s Goliath EV battery division, and it is a positive development to see further grant support awarded
D4 development in the Goliath roadmap
Ilika’s recent D4 development point in the Goliath roadmap “marked an important milestone for the company”, said Liberum.
This progress paves the way for the launch of the first prototype for customer release next year.
The Goliath prototype, a solid-state pouch cell, has met critical data sets including energy and power density, keeping Ilika on track for lithium-ion energy parity by the end of the year, a significant feat in the industry.
Expansion at the Goliath pre-pilot facility
In a strategic move to scale up its capabilities, Ilika is enhancing the capacity of its Goliath pre-pilot production facility.
The planned upgrades, including automation and advanced equipment like roll-to-roll coaters, aim to triple the facility's capacity.
This expansion is a response to the increasing demands from the automotive sector and positions Ilika to effectively meet future requests for quotations.
Liberum said: “We remain of the view that Goliath is well-aligned with the electrification transformation of the transport sector and Ilika expects that both government grant support and commercial interest will intensify as the product matures.”
Liberum reiterates its buy rating for Ilika shares, setting a target price of 65p per share, stating: “Despite a strong performance in Ilika’s share price YTD, we still see a compelling entry point for investors ahead of several share price catalysts across its core divisions in 2024.”