Wunderlich Says A123's (AONE) 'Breakthrough' Technology is All Media Hype; Maintains Sell, $0.50 Target
Tweet Send to a Friend
Get Alerts AONE Hot Sheet
Price: $0.12 --0%
Rating Summary:
2 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
2 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade AONE Now!
Following a jaw-dropping 51-plus percent surge in shares of A123 Systems (Nasdaq: AONE) on Tuesday amid reports of a new "breakthrough" technology, Wunderlich's Theodore O'Neill gave shareholders a sobering smack this morning: there is no new technology.
O'Neill insisted new technologies in the battery sector are "a dime a dozen" and often take years to develop. To that point, the analyst noted A123 will need about $400 million to support current operations for the next 18 months.
O'Neill maintains a Sell rating and $0.50 price target on shares of A123, but said his price target would be a big fat goose egg if the company's factories were excluded from the valuation. O'Neill said A123's factories have "residual scrap value."
Investors in A123 are taking profits Wednesday morning, with the Wunderlich report certainly not helping. A123 shares are down 8 percent to around $1.45 in pre-market action.
To track all the market-moving analyst action on shares of A123, visit our Analyst Ratings page.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
O'Neill insisted new technologies in the battery sector are "a dime a dozen" and often take years to develop. To that point, the analyst noted A123 will need about $400 million to support current operations for the next 18 months.
O'Neill maintains a Sell rating and $0.50 price target on shares of A123, but said his price target would be a big fat goose egg if the company's factories were excluded from the valuation. O'Neill said A123's factories have "residual scrap value."
Investors in A123 are taking profits Wednesday morning, with the Wunderlich report certainly not helping. A123 shares are down 8 percent to around $1.45 in pre-market action.
To track all the market-moving analyst action on shares of A123, visit our Analyst Ratings page.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Fannie Mae, Freddie Mac Surge as Seriously Delinquent Rate Falls Below 3%
- Needham & Company Lifts Numbers on Marvell (MRVL) on Solid Results
- Needham & Company Boosts Numbers on Infoblox (BLOX) on Strong Q3
Create E-mail Alert Related Categories
Analyst Comments, Momentum Movers
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
