SES Stock Forecast & Price Target

SES AI Corp is positioned for substantial growth as it anticipates benefits from capital deployment and synergies related to metals recycling, particularly in 2026. The company reported a notable EBITDA margin of 37.0%, reflecting a 300 basis point year-over-year increase, driven by a favorable mix and general administrative initiatives. Furthermore, SES AI is set to experience enhanced pipeline and terminal operations due to expansions and new initiatives, supporting a positive outlook for future performance.

SES AI Corp faces a negative outlook primarily due to its exposure to the volatile oil and gas market, which historically has led to significant revenue declines, as evidenced by a 51% drop between 2014 and 2016 and a 27% decline in 2020. The company's management has reduced full-year guidance for EBITDA and discretionary free cash flow, reflecting a decrease in customer activity attributed to weaker commodity prices and macroeconomic uncertainties, resulting in a projected EBITDA of $500 million and free cash flow of $260 million, signifying a decrease of 18% year-over-year. Additionally, a decrease in key operational volumes, including produced water and oil recovery, further underscores the challenges SES AI Corp faces in a challenging market environment.