It has been a disappointing few weeks for the Novonix Ltd (ASX: NVX) share price.
Since this time last month, the battery materials company's shares have lost 22% of their value.
Why is the Novonix share price down 22% in a month?
The Novonix share price has come under pressure recently due partly to its larger than expected spending during the first half.
Last month the team at Morgans commented: "NVX spent $15.7m ($8.6m more than Morgans forecast) on operating activities and $112.4m ($22.5m more than Morgans forecast) on investing activities. Headcount has doubled in the Battery Testing Services (BTS) division and corporate overheads were pushed higher by one-offs and underlying increases."
Though, it acknowledges that with $260 million of available cash, "it has plenty of headroom to continue to expand its production capacity."
Nevertheless, due to the prospect of higher ongoing operating costs into FY 2023, potential ramp up delays, and the market's current aversion towards growth shares, Morgans has lowered its valuation.
The broker currently has a hold rating and $4.88 price target on the company's shares. This compares to the current Novonix share price of $5.20, which implies further potential downside of 6.1% for investors.
