# Ilika plc Nearly 500% Potential Upside from the Current Share Price say Panmure Liberum

- Link: https://www.directorstalkinterviews.com/ilika-plc-nearly-500-potential-upside-from-the-current-share-price-say-panmure-liberum/4121177310
- Published: 2024-11-15T08:45:39+00:00
- Author: Anthony Fox

**[Ilika plc](https://www.directorstalkinterviews.com/company/ilika-plc/ika.l)**(
[LON:IKA](https://www.directorstalkinterviews.com/company/ilika-plc/ika.l)), a trailblazer
in the development of solid-state battery technology, continues to solidify its 
position as a leader in the energy storage sector. A recent trading update prepared
by Panmure Liberum highlights significant progress across the company’s core projects,
setting the stage for exciting milestones in 2025. Analysts Lacie Midgley and Oliver
Swift reiterate their **BUY** recommendation with a target price of 70p, emphasising
Ilika’s remarkable potential in both medical and automotive markets.

**Solid Progress in Medical Batteries**

One of Ilika’s standout projects is its **Stereax** division, which develops solid-
state batteries for active implantable medical devices (AIMDs) and wireless sensors.
This niche market presents a lower-risk, high-impact opportunity for the company.
Recent updates confirm that Ilika, in collaboration with Cirtec Medical, is preparing
for the commercial rollout of its M300 battery in 2025. Analysts noted, “Ilika has
focussed on commissioning and running trial batches of batteries to qualify the 
Stereax manufacturing process,” ensuring readiness for full-scale production and
meeting customer demand.

The integration of Stereax batteries into Cirtec’s sub-assemblies creates a streamlined,
cost-effective solution for MedTech customers, reducing time to market. The company
is also actively engaging with a portfolio of 21 customers, jointly promoting its
capabilities at major US conferences in early 2025.

**Automotive Advancements with Goliath**

Ilika’s **Goliath** project, targeting the electric vehicle (EV) market, has made
substantial strides, capturing the interest of global automotive giants. Over the
last period, the company achieved critical milestones, including shipping its P1
prototype batteries to a tier-1 customer and third-party verification of safety 
data. These prototypes demonstrated “significant improvements compared to commercially
available EV batteries,” underscoring the competitive edge of Ilika’s technology.

With the D8 milestone and MVP samples on track for completion in 2025, the Goliath
project is poised to unlock lucrative licensing opportunities with top-tier OEMs.
Panmure Liberum highlighted that Ilika is also exploring non-automotive applications
for Goliath, potentially diversifying its revenue streams through high-margin sectors.

**Valuation and Future Outlook**

Despite its promising technological advancements, Ilika’s valuation appears disconnected
from its potential. The analysts noted a stark contrast with US-listed **QuantumScape**,
valued at $2.5 billion, despite comparable technology readiness. This discrepancy
presents an attractive entry point for investors, especially as Ilika continues 
to narrow the gap toward commercial viability.

Looking ahead, the company’s strong cash position, disciplined management, and strategic
partnerships position it favourably to capitalise on upcoming market opportunities.
The analysts assert: “Our unchanged target price of 70p suggests nearly 500% upside
from the current share price of 14p, with several share price catalysts expected
over the next 12 months.”

**Final Thoughts**

Ilika’s unwavering commitment to innovation in solid-state battery technology, coupled
with its strategic focus on medical and automotive markets, reinforces its standing
as a company with significant growth potential. With key milestones in sight for
2025, investors can anticipate a rewarding journey ahead. As Panmure Liberum aptly
summarises: “We continue to believe that investors can look forward to some of this
value being reflected in the share price in the short-term.”

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