Enovix: Time For A Strategy Change After Surprise CEO Departure (Rating Upgrade)

Last week, Enovix reported second-quarter results slightly ahead of muted expectations. Despite persistent cash burn, the company still has several years of runway. Smartphone battery qualification with prospective lead customer Honor remains a work in progress. Yields at the company's sole volume manufacturing line in Malaysia remain insufficient for commercial production. This week, ENVX stock dropped to new all-time lows after CEO Raj Talluri left the company on short notice. In my opinion, the company should consider a change in strategy and evaluate strategic alternatives. Given plenty of cash runway, I am finally upgrading my rating from "Sell" to "Hold".