Cavendish has retained a ‘buy’ rating on Ilika PLC (AIM:IKA, OTCQX:ILIKF, FRA:I8A), the solid-state battery developer, with a 118p target price, implying 402% upside from the current 23.5p share price.
The broker's view follows completion of Ilika's PRIMED programme, which developed and tested 10Ah Goliath solid-state battery prototypes for automotive and non-automotive applications.
Cavendish said the programme's results had reinforced the decision to optimise the 10Ah format before scaling to 50Ah, allowing Ilika to pursue earlier commercial opportunities in areas including e-bikes and defence.
The broker highlighted the expansion of Goliath beyond electric vehicles, with non-automotive applications potentially offering faster routes to commercialisation than the larger automotive market.
Ilika has already begun exploring the e-bike market through its collaboration with Brompton, while positive defence testing has provided further evidence for potential applications where battery safety is critical.
Cavendish expects financial year 2027 to focus on validating the 10Ah Goliath minimum viable product in higher-margin non-electric vehicle markets and generating early battery sales.
