ZBB Energy: Attractive Relative Valuation, Strong Demand Tailwind And Multiple Near-Term Catalysts
- Stocks in the energy storage industry rose exponentially earlier this year as investors got over their skis in terms of pricing in growth.
- However, expectations have come down too far, which provides underpriced optionality given the near term catalysts and longer term constructive growth outlook.
- Strategic partnerships provide entry into large international markets and much needed cash flow as well as eliminate significant capex requirements.
- The strong balance sheet and lower cash burn rate reduces the chance of another secondary offering in the near term.
- There is strong federal support for the industry as evident by the recent $4 billion in loan guarantees provided by the Department of Energy for renewable energy projects.