MDB Capital Upgrades Ener1 (HEV) to Buy

November 17, 2008 1:16 PM EST

MDB Capital upgrades Ener1 (AMEX: HEV) from Hold to Buy. Price target increased from $7.50 to $10.

MDB analyst says, " We continue to believe that Ener1 will meet or exceed its 2009 volume commitment for the Think vehicle. We believe Ener1 remains positioned for significant future growth in revenues and earnings driven by: 1.) the recent purchase of Enertech, the 3rd largest lithium cell producer in Korea, providing an annual production capacity of 45,000 electric battery packs cells; 2.) excellent revenue visibility as the company has begun limited battery pack shipments against the $70 million two-year contract with Think Global; 3.) the receipt of a purchase order for two plug-in hybrid electric vehicle packs from one of the largest car manufacturers in Europe; 4.) an additional order for a prototype battery pack to retrofit a vehicle for a demonstrative program from one of the largest Tier 1 automotive suppliers; and 5.) the anticipation of significant financial incentives for the electric vehicle industry from the Obama administration."

Ener1, Inc. (Ener1) has three business lines that it conducts through its three operating subsidiaries. EnerDel, Inc., an 80.5% owned subsidiary, which is 19.5% owned by Delphi Corporation, develops lithium ion (Li-ion) batteries for automotive, military and other industrial uses. EnerFuel, Inc. develops fuel cell products and services.

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