Piper Jaffray Initiates Coverage on UQM Technologies (UQM) with an Overweight; Sees Significant Ramp in Sales Over Next 2-3 Yrs

November 9, 2009 5:01 PM EST

Piper Jaffray & Co. initiates coverage on UQM Technologies Inc. (NYSE: UQM) with an Overweight rating. Price target $7.

Piper analyst says, "We are initiating UQM shares at Overweight with a $7 price target as we believe UQM Technologies is uniquely positioned to capitalize on the significant growth potential of electric vehicles over the next five years. While the electric vehicle market has stalled several times in its 100+ year history, we believe that advancements in battery technology and elevated government support will make this time different. We believe a supply contract with CODA Automotive, a partnership with Borg Warner (NYSE: BWA), and an existing customer relationship with Quantum Fuel Systems (the provider of powertrain systems to Fisker Automotive) puts UQM in a position to realize significant revenue growth and profitability over the next 2-3 years, which is not reflected in the stock. The $45 million ARRA grant will significantly lower capital costs for commercial launch and provides increased credibility for UQM in the industry...We are modeling sales to ramp to $142 million in CY12 with net profit of $12 million (9% margin). Our $7 price target is based on 30x a discounted CY12 EPS estimate of $0.35."

To see more analyst ratings on UQM Click Here.

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