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Zacks Initiates Coverage of Ocean Power With Neutral Recommendation
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Zacks Investment Research recently initiated the coverage of Ocean Power Technologies, Inc. (OPTT - Free Report) with a “Neutral” recommendation, highlighting the company’s emerging strengths and the substantial execution risks it faces.
Ocean Power, a developer of autonomous maritime solutions based in New Jersey, has posted a record-high backlog of $7.5 million, driven by the global demand for its AI-enabled PowerBuoy and WAM-V platforms. This has reached a milestone for the company, underscoring growing interest from defense and commercial customers across more than 15 countries. The shift toward a recurring revenue model through “Data as a Service” and “Robotics as a Service” adds credibility to the company’s evolving business model. These offerings are designed to boost margins, improve cash flow predictability and promote customer retention through scalable, subscription-based services.
The research report highlights several key factors that can drive Ocean Power’s growth. Financial discipline is beginning to take shape, with OPTT cutting its operating cash burn by 41% over the first nine months of fiscal 2025 and improving liquidity to $10.2 million.
OPTT’s strength lies in its proprietary autonomous maritime systems, which now integrate AI for real-time monitoring and vehicle control. Its PowerBuoy and WAM-V platforms can support long-duration offshore missions with minimal human oversight, offering competitive advantages in applications ranging from environmental monitoring to defense surveillance. The company’s recent showcase of its WAM-V 22 platform operating autonomously for multiple days signals growing technical maturity and market readiness.
However, potential investors should consider certain risks outlined in the report. For the first nine months of fiscal 2025, OPTT reported a net loss of $15.1 million. Although liquidity has improved to $10.2 million, management has warned of possible funding shortfalls by March 2026, which could raise concerns about the company's ability to continue operating if additional capital is not secured.
Over the past year, OPTT has doubled its share count by issuing more than 100 million shares to fund operations. This continuous dilution may limit future upside for existing shareholders and reflect the company’s dependence on less favorable financing options.
Shares of Ocean Power have skyrocketed more than 240% in the past six months, far outpacing both the Zacks Alternative Energy – Other subindustry and broader market indices. Still, this rally may be outpacing fundamentals, given the company’s continuing losses, high customer concentration and heavy reliance on equity-linked financing.
For a comprehensive analysis of Ocean Power’s financial health, strategic initiatives and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.
Note: Our initiation of coverage on Ocean Power, which has a modest market capitalization of $85.8 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.
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Zacks Initiates Coverage of Ocean Power With Neutral Recommendation
Zacks Investment Research recently initiated the coverage of Ocean Power Technologies, Inc. (OPTT - Free Report) with a “Neutral” recommendation, highlighting the company’s emerging strengths and the substantial execution risks it faces.
Ocean Power, a developer of autonomous maritime solutions based in New Jersey, has posted a record-high backlog of $7.5 million, driven by the global demand for its AI-enabled PowerBuoy and WAM-V platforms. This has reached a milestone for the company, underscoring growing interest from defense and commercial customers across more than 15 countries. The shift toward a recurring revenue model through “Data as a Service” and “Robotics as a Service” adds credibility to the company’s evolving business model. These offerings are designed to boost margins, improve cash flow predictability and promote customer retention through scalable, subscription-based services.
The research report highlights several key factors that can drive Ocean Power’s growth. Financial discipline is beginning to take shape, with OPTT cutting its operating cash burn by 41% over the first nine months of fiscal 2025 and improving liquidity to $10.2 million.
OPTT’s strength lies in its proprietary autonomous maritime systems, which now integrate AI for real-time monitoring and vehicle control. Its PowerBuoy and WAM-V platforms can support long-duration offshore missions with minimal human oversight, offering competitive advantages in applications ranging from environmental monitoring to defense surveillance. The company’s recent showcase of its WAM-V 22 platform operating autonomously for multiple days signals growing technical maturity and market readiness.
However, potential investors should consider certain risks outlined in the report. For the first nine months of fiscal 2025, OPTT reported a net loss of $15.1 million. Although liquidity has improved to $10.2 million, management has warned of possible funding shortfalls by March 2026, which could raise concerns about the company's ability to continue operating if additional capital is not secured.
Over the past year, OPTT has doubled its share count by issuing more than 100 million shares to fund operations. This continuous dilution may limit future upside for existing shareholders and reflect the company’s dependence on less favorable financing options.
Shares of Ocean Power have skyrocketed more than 240% in the past six months, far outpacing both the Zacks Alternative Energy – Other subindustry and broader market indices. Still, this rally may be outpacing fundamentals, given the company’s continuing losses, high customer concentration and heavy reliance on equity-linked financing.
For a comprehensive analysis of Ocean Power’s financial health, strategic initiatives and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.
Read the full Research Report on Ocean Power here>>>
Note: Our initiation of coverage on Ocean Power, which has a modest market capitalization of $85.8 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.