Cantor Fitzgerald has begun coverage of SES AI (SES, Financial), assigning it an Overweight rating along with a $2 price target. Analysts highlight that SES stands out as the sole advanced battery company currently reaching the B-sample stage in collaboration with multiple automotive manufacturers. The company plans to utilize its AI platform to transition efficiently from the A-sample to B-sample phase, capitalizing on a pioneering software service. This strategic move is expected to accelerate commercial development, according to the analysts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for SES AI Corp (SES, Financial) is $1.00 with a high estimate of $1.00 and a low estimate of $1.00. The average target implies an upside of 17.08% from the current price of $0.85. More detailed estimate data can be found on the SES AI Corp (SES) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, SES AI Corp's (SES, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SES Key Business Developments
Release Date: April 25, 2025
- Revenue: $5.8 million for Q1 2025.
- Full Year Revenue Guidance: $15 million to $25 million for 2025.
- Gross Margin: 79% in Q1 2025.
- Operating Expenses: $27.8 million for Q1 2025.
- Cash Used for Operations: $22.8 million in Q1 2025.
- Capital Expenditures: $0.9 million in Q1 2025.
- Liquidity Position: $240 million with no debt at the end of Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SES AI Corp (SES, Financial) achieved a record revenue of $5.8 million in the first quarter of 2025, marking a strong start to the year.
- The company launched a new battery materials discovery software and service platform, Molecular Universe, which is expected to significantly expand their market reach.
- SES AI Corp (SES) maintains a strong liquidity position with $240 million and no debt, providing a solid foundation for future growth.
- The company reported a high gross margin of 79% for Q1, driven by their asset-light business model and AI strategy.
- SES AI Corp (SES) is on track to meet its full-year 2025 revenue guidance of $15 million to $25 million, supported by contracts with automotive OEMs.
Negative Points
- Operating expenses for the quarter were high at $27.8 million, which could impact profitability if not managed carefully.
- The company utilized $22.8 million in cash for operations, indicating significant cash outflow.
- There is uncertainty regarding the global release and adoption of the Molecular Universe platform, as it is still in early access testing with a dozen companies.
- The competitive landscape in the EV battery market is fierce, with other companies pursuing similar strategies using excess capacity and improved electrolytes.
- The success of the Molecular Universe platform is yet to be proven, and its revenue impact remains to be seen.
