Deutsche Bank Downgrades A123 Systems (AONE) to Hold; Confidence Fading
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Price: $0.12 --0%
Rating Summary:
2 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
2 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade AONE Now!
Deutsche Bank downgraded A123 Systems (NASDAQ: AONE) from Buy to Hold.
Deutsche analyst said,"AONE announced on Monday that they would be replacing a large number of battery packs due to a manufacturing defect. The estimated cost of this action - $55MM over the next several quarters – represents a severe impact to a company that had $187MM of balance sheet cash at 2011YE and was already facing a projected FCF burn of at least $155MM in FY2012. We no longer have sufficient confidence that AONE can raise sufficient capital (without massive equity dilution) and/or continue to augment their book of future business; therefore, we are lowering our rating."
For an analyst ratings summary and ratings history on A123 Systems click here. For more ratings news on A123 Systems click here.
Shares of A123 Systems closed at $1.40 yesterday, with a 52 week range of $1.27-$7.87.
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Deutsche analyst said,"AONE announced on Monday that they would be replacing a large number of battery packs due to a manufacturing defect. The estimated cost of this action - $55MM over the next several quarters – represents a severe impact to a company that had $187MM of balance sheet cash at 2011YE and was already facing a projected FCF burn of at least $155MM in FY2012. We no longer have sufficient confidence that AONE can raise sufficient capital (without massive equity dilution) and/or continue to augment their book of future business; therefore, we are lowering our rating."
For an analyst ratings summary and ratings history on A123 Systems click here. For more ratings news on A123 Systems click here.
Shares of A123 Systems closed at $1.40 yesterday, with a 52 week range of $1.27-$7.87.
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