Needham initiated coverage on Eos Energy Enterprises with a Buy rating and an $11.00 price target. This target suggests a 35% upside from the previous closing price.
The firm identified Eos as a key U.S. manufacturer of long-duration zinc-based battery systems. Analyst Sean Milligan cited growing utility-scale storage demand driven by AI infrastructure and the Inflation Reduction Act.
Eos is currently transitioning from technology validation to manufacturing execution and gross margin improvement. The new rating follows a surprise profit reported by the company in the first quarter.