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Piper Jaffray Upgrades Energy Conversion Devices (ENER) to Buy

February 10, 2009 7:23 AM EST
ENER Hot Sheet
Rating Summary:
    0 Buy, 1 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Piper Jaffray & Co. upgrades Energy Conversion Devices (Nasdaq: ENER) from Neutral to Buy and raised its price target $25 to $33, citing strength in Europe, U.S. legislation, and less pronounced ASP declines.

Piper analyst says, "We upgrade shares of ENER to BUY for three primary reasons: 1) greatest exposure to strength in France and Italy; 2) prime beneficiary of pending US federal/state legislation; and 3) ASP declines are less pronounced than anticipated. We introduce our CY10 EPS estimate of $2.95 and increase our PT to $33. Although we anticipate the stock will appreciate in 12 months, we caution investors that there may be weakness/volatility near term because a) other solar companies are likely to report poor results for the next two weeks; and b) the recent appreciation of solar stocks may be more attributable to short covering than long-term investing. ENER will present at our 4th Annual Piper Jaffray Cleantech Conference on Feb 19th."

Energy Conversion Devices, Inc. (ECD) commercializes materials, products and production processes for the alternative energy generation, energy storage and information technology markets.

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