2017 To Be Pivotal Year For Energous; Oppenheimer Downgrades Stock

Shares of Energous Corp WATT, which makes wireless charging solutions, plunged more than 13 percent after Oppenheimer downgraded the stock to Perform, saying the company is “unable to become more constructive until [it] starts shipping product.”

What's WattUp?

Energous is seeking to disrupt the wireless charging space with its WattUp technology, which has the ability to charge/power devices within a 15-foot radius. Oppenheimer expects product shipments to start in the second quarter of 2017.

“Having covered many emerging technology and product companies, we note the last few months prior to shipments are the most tenuous, so we take a prudent view,” analyst Andrew Uerkwitz wrote in a note.

A Look Ahead

Uerkwitz believes the next three quarters will bring a higher level of volatility as the company gears up for product launch and there could be last-minute delays as many partners come together for the first time.

Further, the analyst believes 2017 will be a pivotal year for Energous with communication on FCC approval, potential Tier 1 partner reveal, and additional customers getting to market. The year could also see the light of commercialized near-field and mid-field solutions and more color on long-distance.

“We do see the merit and validation in achieving actual product shipments (near-field) in such a short company history, but we see the risk/reward being balanced until we get more certainty around impending partners and product launches,” Uerkwitz added.

On the valuation front, the stock has climbed 209 percent in the last one year versus Nasdaq’s 21 percent and recently surpassed Oppenheimer’s previous price target of $15.

At last check, shares of Energous had fallen 13.47 percent to $15.32.