SLDP: Collaboration Will Drive Future Margin Expansion And Support Long-Term Upside

Analysts have modestly raised their price target on Solid Power to reflect a slightly lower discount rate and minor adjustments to long term margin and valuation assumptions. This signals a cautiously more optimistic outlook for the stock.

What's in the News

• Solid Power, Samsung SDI, and BMW have entered a strategic collaboration to develop and validate a demonstration vehicle powered by all solid state battery technology, aiming to accelerate commercialization by leveraging each partner's expertise (Key Developments).
• Under the collaboration, Solid Power will supply sulfide based solid electrolyte that Samsung SDI will integrate into separators and catholytes to build cells, which will then be evaluated against performance requirements agreed with BMW (Key Developments).
• The three companies ultimately aim to deliver all solid state battery cells for integration into a demonstration vehicle, highlighting Solid Power's strategy to become a key electrolyte supplier to Tier 1 battery manufacturers and automotive OEMs (Key Developments).
• All solid state battery cells under development are expected to offer higher energy density, longer battery life, and improved safety by replacing liquid electrolytes with solid materials, reinforcing the long term potential of Solid Power's technology (Key Developments).
• Solid Power reported that between July 1, 2025 and September 30, 2025 it did not repurchase additional shares, but confirmed completion of its previously announced buyback, totaling 9,065,797 shares, or about 5.03 percent of shares outstanding, for $12.59 million (Key Developments).

Valuation Changes

• Fair Value is essentially unchanged at 7.0 and reflects a stable long term intrinsic valuation estimate for Solid Power.
• The Discount Rate has been reduced slightly from about 8.18 percent to 8.13 percent, which modestly increases the present value of future cash flows.
• Revenue Growth is effectively unchanged at around 10.57 percent and indicates no material shift in long term growth expectations.
• The Net Profit Margin has been trimmed slightly from roughly 5.48 percent to 5.29 percent, pointing to a modestly more conservative profitability outlook.
• The Future P/E has increased marginally from about 1,327.9x to 1,375.5x and suggests a small uptick in the valuation multiple applied to projected earnings.