Analyst Emmanuel Rosner at Deutsche Bank started coverage of SES AI Corp. SES, +1.49%, rating it a hold and giving it a $7 price target. “We believe the company is taking a thoughtful approach to developing hybrid lithium metal battery technology for the automotive industry, which could offer significant advantages over current li-ion batteries and eventually enable SES to disrupt the market if successful,” Rosner said in a note Thursday. SES has partnerships with several auto makers, including General Motors Co. GM, +2.39%, which provides “a solid path to commercialization once the development is complete,” the analyst said. SES however, needs to show “it can solve large technical challenges ahead and scale up its technology,” Rosner said. “Even if all goes according to plan, the company is still several years away from mass manufacturing and even further from monetizing it.” Deutsche Bank said it expects revenue of $400 million in 2025 for the company, but EBITDA is likely to remain negative through 2026, and free cash flow until 2029. “We estimate the company has enough capital to last to 2024 but will likely need to raise more to pursue its proposed expansion plan,” the analyst said. Shares of SES AI have lost 47% so far this year, compared with losses of around 18% for the S&P 500 index SPX, -0.25%.
