Why ESS Tech Stock Rallied Another 11% at the Open Today
Shares of ESS Tech (NYSE: GWH), a utility-scale electric battery storage company, rose dramatically on Dec. 23, gaining as much as 11% in morning trading. Roughly two hours into the day, it was still holding on to an advance of nearly 9%. The news that spurred the price movement, however, came out on Dec. 22, a day when the stock also rose. And it all ties back, at least loosely, to a news update from the company on Dec. 20. Here's the background.
The share price gains over the last two days are at least partly the result of a new analyst call on the stock. Baird initiated coverage of ESS Tech on Dec. 22 with an outperform rating and a $15-per-share price target. Investors tend to like this sort of thing. The stock, meanwhile, is still a little below that $15 target, even after a two-day rally, so there continues to be upside potential here, assuming you buy into the analyst's story. Which gets to the real issue here: ESS Tech's utility-scale iron flow batteries could offer a compelling alternative to batteries more likely to catch fire, notably lithium-ion batteries.
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Source Fool.com
