JPMorgan downgraded Enovix to Underweight from Neutral without a price target ahead of the Q1 report on May 13. The firm believes competing in the smartphone battery space is "exceedingly challenging" and that Enovix's volume ramp "will continue to slip and likely disappoint." Enovix's energy density lead is narrowing faster than the market appreciates, as incumbents are likely to close the performance gap while having superior scale, cost structure, and entrenched manufacturer relationships that could make it difficult for Enovix to drive profitability inline with prior targets, the analyst tells investors in a research note.
