Cowen & Co Initiates Coverage on Ener1 (HEV) with a Neutral

October 13, 2008 8:58 AM EDT

Cowen & Co initiates coverage on Ener1 (AMEX: HEV) with a Neutral.

Cowen analyst says, "ENER1 is an emerging supplier of next gen lithium-ion batteries for hybrid electric and electric vehicles. Recent announcements from major auto manufacturers and initial demand for EVs from start-ups like Th!nk and Tesla suggest that the mkt for electric/hybrid cars will explode over the next decade. Advanced batteries are the linchpin technology required for success. ENER1 is an early stage public company, positioned to capitalize on these exciting trends by offering a complete next-gen lithium-ion battery solution to its customers. Today, ENER1 has an initial contract to supply batteries (in final qualification) to Th!nk, one of the most advanced EV suppliers in the world. At $17k/battery, even modest production volumes (Th!nk forecasts 7k units in '09, 15k in 2010) can result in significant revs. Still early, we're initiating coverage with a Neutral rating: Note that ENER1 will require additional capital soon and we'd like to see new customer announcements and a successful manufacturing ramp before getting more constructive on the shares, which trade at 6x our 2010 revenue forecast."

Ener1, Inc. has three business lines that it conducts through its three operating subsidiaries: EnerDel, Inc., EnerFuel Inc. and NanoEner. Ener1 has developed a working prototype of its hybrid electric vehicle (HEV) battery pack and is producing sample cells for testing for an electric vehicle battery pack.

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