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Invinity Energy System (LSE: IES) has crashed from over 240p in 2020 down to penny share territory, by the time of writing, at just 20p. But it’s picked up 26% so far in 2025.
Storming back?
When a stock has fallen out of favour as badly as this one, it can take a number of things to get it back on track. And right now, it looks as if they might be coming together.
Invinity makes vanadium flow battery systems used for stationary energy storage. They tie in nicely with the needs of solar, wind and other renewable energy production. Nature tends not to follow a daily business schedule, so energy from these sources is anything but steady.
The world might have shelved its low-carbon pledges for now. But in the long term, things still have to change.
Broker sentiment
Broker sentiment’s bright. It’s the only stock I’ve seen recently where all the analysts offering a rating have it as a Buy. But before we get too excited, there are only three of them. Still, their average price target of 70p is 250% ahead of today.
Even the least bullish sees a 100% gain to 40p. And that leaves one super optimist expecting 105p for a five-bagger. So why isn’t everyone already piling in and pushing the price way up closer to these targets?
Well, nothing’s ever that good. And the number one drawback with Invinity Energy is a lack of profit. Yes, it’s jam tomorrow again. But here’s where things might be coming together further.
Profit soon?
Analysts forecast a profit in 2027. It would only be a tiny one, so it could easily miss. But a profit is a profit. In terms of timing, it really couldn’t squeak in much tighter. The company reported net cash on its books of £32.4m at the end of 2024 following a funding round.
That should keep it going for a little while yet… until some time in 2027, according to the forecasts. That’s when they expect the company to swing into net debt of close to £1m. So the predicted profit, if it comes off, could be just in the nick of time.
With FY 2024 results, CEO Jonathan Marren spoke of “the significant shift we are currently observing across global battery markets towards the next generation of energy storage technologies and I firmly believe we are in a strong position to take our place at the forefront of this shift.“
Competition
This is a very competitive business, but I do see room in the market for a number of winners — though it’s by no means sure Invinity will be one of them.
Still, I rate the chances of long-term technological success highly. The short-term danger is that the money will run out, the company will need a new fundraise, and investors who buy now will see their holdings diluted.
Should we consider buying on the hope of some potentially serious growth? I’m thinking of it, perhaps with just a small amount of money.
