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Microvast Soars 850% in a Year: Should Investors be Onboard Now?

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Key Takeaways

  • MVST shares have soared 849.7% in a year, far outperforming peers and its broader industry benchmark.
  • A strategic Evoy deal and solid-state battery breakthrough highlight MVST's tech and market expansion.
  • MVST trades at a lower P/E than peers, with 2025 revenue projected to grow 22.9% to $466.7 million.

Microvast Holdings (MVST - Free Report) shares have skyrocketed 849.7% in a year, outperforming the 38.3% rise of its industry and 12.9% growth in the Zacks S&P 500 Composite.

MVST has outperformed its industry peers, AppLovin (APP - Free Report) and Dave (DAVE - Free Report) . AppLovin and Dave shares have soared 286.4% and 785.3% in a year.

1-Year Price Performance

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

We have analyzed Microvast stock's rally and recommend whether investors should jump on the bandwagon or stay away from it.

MVST’s Economic Moat: Evoy Partnership & ASSB Technology

In 2024, Microvast entered a partnership with Evoy, a Norwegian specialist in high-output electric motor systems for boats. This marked MVST’s market diversification, drawing a vivid picture of its versatile and robust battery technology. The electric boat and ship market is anticipated to grow, seeing a CAGR of 12.7% from 2025 to 2030, fueled by tech advancements in battery systems and propulsion technology.

Evoy’s integration of MVST’s MV-I battery due to its improved safety and reliability in boat applications has demonstrated the company’s ability to productize its core battery expertise beyond traditional commercial vehicles. This accomplishment validates their technological capabilities for high-performance applications, opening spaces to other specialized electric sectors such as aviation, defense and construction equipment.

The company reached a milestone in the development of its True All-Solid-State Battery (“ASSB”) technology in January 2025. This advancement is a cornerstone in enhancing safety, energy density, and efficiency for data center backup power systems and electric school buses, while paving the way for future innovations in robotics and electric vehicles.

Microvast’s ASSB uses a bipolar stacking architecture that supports internal series connections within a single battery cell. The company has also eliminated liquid electrolyte, allowing a single cell to gain dozens of volts or higher.

The success of this technological advancement has positioned the company well as a transformative innovation within the battery market, which is anticipated to flourish, witnessing a CAGR of 16.4% from 2025 to 2030. Management’s optimism for year-over-year revenue growth of 18-25% to $450-$475 million in 2025 gives a whiff of confidence in scaling production.

Microvast Stock Cheap, Liquidity Strong

MVST trades at a forward price-to-earnings ratio lower than AppLovin and Dave, and the industry as a whole. Microvastis is priced at 19.4X, lower than the industry’s 22.03X. APP and DAVE currently trade at 32.77X and 26.59X, respectively. If you are a value-oriented investor, then the MVST stock should be appealing.

P/E - F12M

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

In terms of liquidity, we find it to be significantly impressive, given that the current ratio during the March quarter has increased 28.2% from the year-ago quarter to 1.32. While the metric lags the industry average of 1.84, there is no denying the fact that a current ratio of more than 1 means that MVST can cover short-term obligations easily.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

MVST’s Strong Top & Bottom-Line Prospects

The Zacks Consensus Estimate for the company’s 2025 revenues is $466.7 million, implying 22.9% year-over-year growth. For 2026, the top line is pegged at $601.3 million, indicating a 28.8% year-over-year increase.

The consensus estimate for MVST’s 2025 earnings per share stands at 13 cents, suggesting a 148.2% year-over-year upsurge. For 2026, the bottom line is projected at 24 cents per share, representing an 88.5% year-over-year increase.

Over the past 60 days, two EPS estimates for 2025 and one for 2026 have been revised upward with no downward revisions. The Zacks Consensus Estimate for 2025 earnings increased to 13 cents from a loss of a penny. For 2026, earnings estimates skyrocketed 242%.

These upward revisions reflect analysts' growing confidence in MVST's ability to improve its financial performance, supported by its strong business model and solid growth potential.

Buy Microvast Now

Microvast, which is a global leader in advanced battery technologies, is well-positioned to expand its market share within the battery market by leveraging its new AASB technology and entry into the electric boat segment. We expect strengthening in scalability from management’s optimistic top-line outlook.

MVST is a fundamentally strong stock that presents an attractive proposition to investors due to its discounted valuation and solid liquidity. Given these positive factors, we recommend that investors add this stock to their portfolio now to capitalize on the continued rally.

Microvast flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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