Dragonfly Energy Holdings: A Buy Rating on Resilience, Diversification, and Undervalued Technology

Roth MKM analyst Chip Moore assigned a Buy rating on Dragonfly Energy Holdings Corp (DFLI – Research Report) today and set a price target of $0.90.

Chip Moore has given his Buy rating due to a combination of factors demonstrating Dragonfly Energy Holdings Corp’s potential for growth and expansion into new markets. The company’s resilience in its core RV market, despite current industry challenges, is underscored by its profitability in the years leading up to its public debut. Moreover, Dragonfly’s diversification into auxiliary power units for trucking and other niche energy storage areas is expected to create additional revenue streams and drive further upside. The firm’s investment in solid-state battery technology, while delayed by macroeconomic factors, is another area where Moore sees longer-term value that the market has not yet fully appreciated.
Additionally, Moore believes that Dragonfly’s strategic management of its financials, including working capital and inventory, positions it well to navigate near-term cash burn and growth financing. The company’s exploration of various pathways to commercialize its patented dry deposition technology, including potential government funding and licensing models, offers promising upside potential. With a price target set at $0.90, Moore’s valuation reflects a belief in the company’s ability to recover in its challenged end-markets, capitalize on diversification efforts, and leverage its unique solid-state manufacturing technology. The current significant discount in Dragonfly’s trading price relative to its peers further bolsters the case for a Buy rating.

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Dragonfly Energy Holdings Corp (DFLI) Company Description:

Chardan NexTech Acquisition 2 Corp is a blank check company.