Cowen Boosts Estimates on Energy Conversion Devices (ENER), Sees Large Upside in the Stock

Cowen & Co. raised their FY09/10 EPS estimates on Energy Conversion Devices (Nasdaq: ENER) today, saying higher margins and interest on cash offset incremental shares from the recent offering. The firm sees 50%+ upside in the share prices versus the market.

Cowen sees $500 million in additional capex for F09/10, but assumes no revenue from the expansion until FY11.

Cowen sees plenty of triggers to boosts the stock:

- Sales agreements are in place for 94% of expected 2009 production and 48% of 2010
- Contracts totaling 600MW through 2013, an increase of about 200MW since the Q3 call
- Expect more new contracts, including deals signed at Intersolar, to add to backlog and visibility on forward ASPs
- Also - details of the next factory, margin expansion, and likely EPS upside.

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