EnSilica - now we are talking!!! Broker jacks up Target Price to 130p (85p) on back of major win.

Mark Watson-Mitchell - 01.06.2026

This morning EnSilica (LON:ENSI) has announced that it has secured a significant 7-year manufacturing and supply contract with a German automotive component manufacturer for an ARM-based sensing chip.

The contract is expected to generate approximately $75m in revenue over its term.

The contract, which requires no further design work as the chip is already in production, is projected to contribute around $4m in revenue for the financial year to end-May 2027, with margins reflecting the manufacturing-only nature of the agreement.

This win, achieved through a competitive tender, highlights EnSilica's growing automotive expertise and its ability to deliver chip production at scale, while also providing strategic benefits such as access to the German automotive supply chain and reinforcing its position with foundry partners.

It is sure to be reflected in an upward movement in the group’s share price today, it closed 3p down on Friday night, at 113p.

The recent High was 126p – which could well be seen again very shortly.

The Business

The £133m-capitalised business, which is headquartered near Oxford, operates design centres across the UK, India, Brazil and Hungary.

EnSilica is a fabless, application-specific chipmaker, combining deep domain and system-level expertise with world-class capability in RF, mmWave, mixed-signal and complex digital IC design.

The company serves customers across the space and communications, industrial, automotive and healthcare markets, where safety, security and reliability are critical.

A growing portfolio of reusable IP and silicon platforms underpins a repeatable, scalable delivery model, reducing development risk, cost, and time-to-market while supporting long-term supply revenues.

EnSilica has a strong track record of delivering production-proven silicon to demanding industry standards.

Management Comment

CEO Ian Lankshear stated that:

"We are pleased to have secured this Contract, which will not only generate material future revenues but is expected to also deliver significant strategic benefits for EnSilica.

The Contract opens up a connection to a Tier 1 German automotive supply chain, increases wafer volume shipments through our partner foundries - reinforcing our position as a key customer - and it secures the VDA-aligned automotive quality standard required to operate within the German automotive sector.

It also places EnSilica in a stronger position to secure future higher-margin ASIC design opportunities in this important market."

Broker View

At Panmure Liberum, analysts Harvey Robinson and Andrew Ripper have a Buy note out on the group's shares.

"Our confidence in the company’s medium-term outlook is increasing, and we now factor this into our target price, which we increase to 130p, and we retain a Buy.

My View

Now we are starting to talk!

Gradually, very gradually, after several recent wins, EnSilica is building up its Order Book.

It will take some time to flesh out the valuation around the bare bones; however, the company is enjoying its participation in the global Space Sector frenzy and investors are 'switching on' to its potential attractions.

(Profile 02.06.25 @ 34.50p set a Target Price of 43p*)

(Profile 23.07.25 @ 39p set a Target Price of 50p*)