Dougherty & Co Starts A123 Systems (AONE) at Neutral; One Market Leader in an Unproven Market
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Price: $8.56 --0%
Rating Summary:
3 Buy, 5 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 5 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co initiates coverage on A123 Systems (NASDAQ: AONE) with a Neutral. PT $2.00.
Dougherty analyst said, "We believe AONE’s long-term success is dependent upon its electric vehicle battery business scaling to more than ten times its current size, with annual unit volume of 49,000 (TTM is 4,000.)"
"AONE’s gross margins are negative and will be until at least 2013, according to our analysis. The biggest factor in reducing costs is volume, and thus, end-market demand of electric vehicles presents the biggest risk and opportunity for A123. We also need to see the electric grid storage business scale at a 45% CAGR to 2014."
"A123 operates in a competitive space with several other firms vying for leadership in the electric battery market...Also in the near term, we believe that street expectations for AONE are too high for 1H12, given delays with chief customer Fisker Automotive."
For an analyst ratings summary and ratings history on A123 Systems click here. For more ratings news on A123 Systems click here.
Shares of A123 Systems closed at $2.41 yesterday.
Dougherty analyst said, "We believe AONE’s long-term success is dependent upon its electric vehicle battery business scaling to more than ten times its current size, with annual unit volume of 49,000 (TTM is 4,000.)"
"AONE’s gross margins are negative and will be until at least 2013, according to our analysis. The biggest factor in reducing costs is volume, and thus, end-market demand of electric vehicles presents the biggest risk and opportunity for A123. We also need to see the electric grid storage business scale at a 45% CAGR to 2014."
"A123 operates in a competitive space with several other firms vying for leadership in the electric battery market...Also in the near term, we believe that street expectations for AONE are too high for 1H12, given delays with chief customer Fisker Automotive."
For an analyst ratings summary and ratings history on A123 Systems click here. For more ratings news on A123 Systems click here.
Shares of A123 Systems closed at $2.41 yesterday.
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