With covid-19 restrictions lifted, Novonix's Chattanooga anode plant is up and running, notes Morgans and considers the company to be on track for its Samsung order scheduled for October.

Morgans notes a strong operating cashflow for the third quarter and considers the lithium battery developer well-funded in terms of working capital demand for its first contract.

The broker forecasts the battery testing services business to double its revenues in FY20.

The stock is rated Speculative Buy with target price at $0.82.

Sector: Materials.

Target price is $0.82.Current Price is $0.36. Difference: $0.46 - (brackets indicate current price is over target). If NVX meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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