Panmure Liberum reiterated its 'buy' recommendation and 70p a share price target for stock in Ilika PLC (AIM:IKA, OTCQX:ILIKF), the producer of next-gen solid-state batteries.
That valuation is a significant premium to the current price of 14.95p and reflects the broker's confidence in the story.
PL pointed out there are a number of potential value catalysts coming up, including the creation of an MVP for the Goliath power unit being developed for electric vehicles and consumer appliances. This, it is hoped, will underpin its deal with an unnamed, tier-one manufacturer (OEM).
In the 11-page note following Ilika's trading statement, Panmure draws some parallels with QuantumScape, the UK battery developer's nearest competitor.
The broker pointed out that the respective technologies are similar in scale and performance, and not too far apart on the development chart.
However, QuantumScape is valued at almost £2 billion, while Ilika (shares down 59% year to date) has a market capitalisation of £25 million.
Panmure said the disparity was "anomalous" adding that the current price offers an "attractive entry point" for investors new to the story.