Shares of electric and hybrid car battery maker A123 (AONE) have spiked this morning after Goldman Sachs analyst Mark Wienkes upped his rating on the stock to Buy from Neutral. He maintains a $ 9 target on the stock, 63% above Friday’s close.
“We think the market is now discounting just the current chapter of the story, although specific catalysts that improve revenue visibility lie two-to-six months on the horizon,” he writes in a research note. “These proof points support the near-term stock opportunity back towards $ 9/share, with margin visibility needed to go higher. Also, a stronger balance sheet” – the company recently raised $ 254 million – “helps to de-risk the capacity expansion, improves A123’s competitive position, and thus, lends credibility to what we now view as a more realistic revenue ramp.
He sees four near-term catalysts for the stock:
AONE this morning is up 32 cents, or 5.8%, to $ 5.83.
“We think the market is now discounting just the current chapter of the story, although specific catalysts that improve revenue visibility lie two-to-six months on the horizon,” he writes in a research note. “These proof points support the near-term stock opportunity back towards $ 9/share, with margin visibility needed to go higher. Also, a stronger balance sheet” – the company recently raised $ 254 million – “helps to de-risk the capacity expansion, improves A123’s competitive position, and thus, lends credibility to what we now view as a more realistic revenue ramp.He sees four near-term catalysts for the stock:
- Initial sales to electric car maker Fisker.
- Announcement of a major OEM partner for battery systems on a global auto platform.
- A new CFO bringing increased transparency.
- Announcement of a Department of Energy loan commitment.
AONE this morning is up 32 cents, or 5.8%, to $ 5.83.
Forbes - Autos
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