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KULR Technology Group’s Battery Safety Technology is an Industry Game-Changer and a Multi-Billion Dollar Targeted Opportunity (NYSE-AMER: KULR)
KULR Technology Group (OTC Other: KULR) stock is consolidating at $2.06. And many are surprised that the stock is not trading substantially higher. In fact, with its innovative patent-protected battery safety technology being called a potential game-changer in multiple sectors, some analysts are chiming in with price targets that call for a more than 114% upside to its share price. And they model for that surge based on substance rather than hype. Indeed, their case is decidedly bullish.
In fact, in its June update, Taglich Brothers revised its 12-month share price target higher by 29% to $4.50. This came after Taglich re-visited its original forecast and modeled KULR's substantial revenue growth, its list of top industry clients, and its market potential created by its thermal management and heat dissipation technology into the equation. In fact, Taglich appears so impressed by what they see that they expect a tripling of revenues by the end of 2021.
And it's not only Taglich that is impressed; clients are as well. In fact, that count is increasing, adding to an already impressive list that includes NASA, battery manufacturer SAFT, a Total Company (NYSE: TOT), Andretti Technologies, and Lockheed Martin (NYSE: LMT), to name a few. Moreover, those clients are taking advantage of KULR's lithium-ion battery safety technology in various sectors, with its trip to Mars as one example of how its clients value its technology to protect multi-billion-dollar assets.
Video Link: https://www.youtube.com/embed/Z9Jx7wLJk7Y
Technology Earns a Trip to Mars
In fact, NASA included its carbon fiber thermal management solutions on Mars Rover Perseverance 2020, validating its standing as having a best-in-class solution to protect its billion-dollar assets. And here on earth, KULR noted that the FAA is evaluating its technology for in-flight applications for its effect to mitigate ion-battery malfunctions. Indeed, a recommendation by the FAA to include this technology in aircraft would be a catalyst of enormous proportion. In fact, it could likely add multiples to its current stock price.
And the odds of that happening tilt in KULR's favor. That's because KULR is showing near irrefutable proof that its technology can substantially reduce the risk of fire and explosion. And in aircraft, the use of lithium-ion batteries is substantial, making the threat of disaster a risk too big to ignore. In fact, a recent video that surfaced showed how dangerous these batteries can be.
In that instance, a Hoverboard owner caught the explosion as it happened, showing the devastating power even the smaller lithium-ion batteries can have. And while comparing a Hoverboard to an aircraft may seem extreme, comparing the two batteries in use are not. Fair warning...keep an eye out for an update from that market. Remember, too, KULR is earning its recognition.
The interest by NASA, the FAA, and others result from battery safety technology that recently earned a third patent covering its Thermal Runway Shield (TRS) technology. And that increased protection is an asset that needs to be valued, primarily since it covers its passive propagation resistant solution, which has been designed, tested, and shown to reduce the hazardous risks associated with thermal runaway in lithium-ion battery packs. And that IP could be a necessary ingredient to any competitor's success.
Thus, while its TRS product is used by NASA to transport to and store batteries aboard the International Space Station, its value could enhance literally thousands of products across multiple industries.
The even better news is that many companies in various sectors are taking an interest. In fact, beyond its deals with Andretti Technologies and its EV racing car subsidiary, KULR is advancing agreements with Volta Energy and Drako to extend its reach in battery safety technology for grid and stationary energy storage modules. KULR has offered guidance suggesting that its deal with Volta could ramp considerably in the back half of this year. That, too, could be a near-term catalyst to drive shareholder value higher.
Still, while each of those deals adds substantial revenue-generating potential, KULR's opportunities to exploit the microelectronics and consumer products markets could deliver the most bang for its buck.
Massive Microelectronics and Consumer Products Markets
Better still, those markets may already be in play. And if they ink a deal there, KULR could become a revenue-generating juggernaut literally overnight.
Although KULR didn't provide a name, investors are focused on a line in a recent presentation where KULR alluded to a potentially massive agreement with a leading supplier of electronic components in smartphones. Of course, cell phone users often don't consider their devices a walking time bomb. However, by Googling "exploding phones," they will soon understand why this opportunity is massive. And while the CEO may be pressed more on this potential deal in its upcoming earnings report, knowing that KULR technology could feasibly be included in hundreds of millions of consumer products, including phones, makes that potential a "trade ahead of the news" circumstance.
KULR may also get broad exposure to the revenue-generating potential from the consumer markets after earning two special permits from the US Department of Transportation granting permission to transport lithium-ion and metal batteries for recycling. Don't underestimate the potential of this allowance. In fact, with lithium-ion batteries powering everything from power tools to components on spaceships, the need for proper disposal is nearing an all-time high. Best of all, revenues generated through these permits alone can send shares soaring based on industry multiples.
Moreover, its attention to capitalize on smart-battery market opportunities in the $127 billion drone sector adds even more firepower to the value proposition. Better yet, KULR's recently enhanced facilities position them to take advantage of diverse opportunities while still keeping focused on its core competencies. In fact, KULR has pointed toward the accretive nature of its technology, making it applicable to multiple target markets in a relatively seamless fashion. Thus, while it looks like KULR is being overly ambitious, in actuality, they are targeting markets well within their reach.
That's great news to investors expecting KULR's momentum to continue after posting a massive Q1.
Momentum On Its Side
In fact, investors expect KULR to add to its 439% increase in comparative Q1 revenues, banking on deals made in Q1 and Q2 that positioned the company to do even better in the back half of this year. Further, after completing a $6.5 million capital raise, an uplist to the NYSE-American exchange, and its facility upgrades, KULR also appears to be in its best operating position ever to maximize and continue its growth beyond already surging revenues.
Better still, KULR helped shape the optimism by telling investors last quarter that it is well-capitalized to accelerate growth in its diversified commercialization strategy. And they can put that capital to use by exploiting the capacity of a new facility that is roughly 4X larger than its current location, allowing KULR to significantly expand bookings and client engagements.
That expansion could already be happening. KULR said it is already working with the Marshall Space Flight Center, evaluating a dual-use opportunity to integrate its technology into 3D-printed battery systems for manned and robotic space applications. Also in play are programs with Leidos and Lockheed Martin to develop hypersonic and directed energy defense applications. Still, KULR has more in its pipeline.
Beyond the specific applications developed for Andretti Technologies, KULR announced that the partnership is also focused on co-developing and co-marketing battery and safety technologies to automotive partners for mass-market EV applications. Indeed, that market is already substantial and growing, noting General Motors' (NYSE: GM) $35 billion investment toward EV and autonomous car production.
Targeting niche opportunities in that space, and having the Andretti name behind those efforts, could accelerate user adoption in that sector. At least one thing is for sure- battery technology is the lifeblood of the EV sector, making KULR's presence both a timely and potentially lucrative market opportunity.
And that helps make the KULR investment proposition compelling.
KULR Has More Than Share Price is Telling
In fact, despite the adage that the share price always tells the truth, in this case, it may be missing the mark. Even one target market should demand a substantially higher valuation and market cap. Plus, they have cash on hand, compelling IP, an enhanced operating facility, and a well-researched analyst opinion calling for shares to trade more than 70% higher this year. Combine it all, it's hard to argue against KULR's potential and likelihood to deliver strong growth in the back half of this year.
Moreover, they have a top-tier client base, are doing business in multiple billion-dollar markets, and are seizing opportunities not only in the battery safety and protection space but from their disposal as well. Thus, with revenue-generating exposure in everything from battery-operated phones to hypersonic missiles, KULR offers a value proposition that is more than compelling; it may be too big to ignore.
Still, market disconnects also expose opportunities. And with its Q2 report in the wings and expectations for KULR to deliver a consecutive blowout quarter, current share prices will likely be a thing of the past. In fact, the window of opportunity at the $2.06 level may be starting to close...and probably close entirely sooner rather than later.
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