Here is an explanation of my recent 85p price forecast for 2026…
EnSilica plc (London: ENSI) has gained 25% in a week and now stands at 45p, above its 200 day moving average, following the announcement of an innovative new chip design last week.
The firm is currently trading at a Price to Sales (PS) of roughly 2 (based on sales of about £20m in FY25) having also risen after a very positive update in June that while not stated, is probably in relation to their contract with AST Space Mobile*.
The company’s outlook as confirmed by the Board of Directors is for sales of between £33m and £35m for this financial year. Based on this and research I carried out in March, that suggested various peers had an average PS of 3.04, if £33m sales and the average PS are achieved on the back of positive momentum, then that could mean a market capitalisation of over twice what it is now.
Being relatively conservative my share price forecast of 85p for next year is based on sales of £33m and a PS of 2.5.
A recent report from its US advisor Stonegate gave a mid-point valuation of 83p. You can read their report here: https://stonegateinc.reportablenews.com/pr/stonegate-updates-coverage-on-ensilica-plc-aim-ensi-mid-year-update-1h-2025
* Contract update: https://www.londonstockexchange.com/news-article/ENSI/contract-update/17081930
