Ilika Plc (LON:IKA) is the topic of conversation when we caught up with Liberum Equity Research Analyst, Sam Wahab. We asked Sam:
What were the key points investors should be aware of?
First deliveries to Blink Energy and now to CubeWorks and Lura Health suggests commercialisation of Ilika’s medical SSBs is in the ascendency. Ongoing discussions with Cirtec remain encouraging with regards to Stereax outsourcing to the US and we would not be surprised to see a positive near-term outcome. At Goliath, the company is targeting Li-ion energy density parity by the end of 2023(currently >80%) ahead of implementing a scale-up to mega-factory scale in order to support a commercial roll-out of a small portfolio of electric hyper and super car models. Ilika’s share price (albeit +100% YTD) continues to reflect material value to investors in our view.
Have you adjusted your forecasts in any way?
No change as yet, but once details of existing shipments are made public (i.e quantity, ASP etc) and discussions conclude with Cirtec – we will revisit.
How do you see the company in terms of fair value?
Currently we model Stereax on a FY25E 20x multiple on 30,000 units sold which is very conservative given recent events. Goliath is on 20x 2040E EV/EBITDA. Overall 60p/share TP ahead of details outlined above – scope to revisit once we have more information on shipments/discussions etc.
Ilika is a pioneer in solid state battery technology, enabling solutions for applications such as Industrial IoT, MedTech, EV and Consumer Electronics.
