Lazard Capital: Fisker Presents Significant Opportunity For A123 Systems (AONE); Thomas Weisel Starts At Market Weight

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07:57:04 am on April 27, 2010

Lazard Capital noted that on Friday, the DOE’s big $528 million loan to Fisker Automotive for the development of its Karma and Nina electric vehicles closed.  As the only battery supplier to Fisker, it represents a big opportunity for A123.  Lazard maintains a Buy rating on the stock.  On April 12th, Lazard confirmed that Chrysler will use A123 lithium batteries in its Fiat 500 line of electric cars which Lazard believes could be a $100 million deal.

On another note, Thomas Weisel has initiated coverage of AONE this morning with a Market Weight.  I don’t see a price target, but if someone has that please comment below. Thanks! 

===> Click Here For Your FREE A123 Systems Analysis

The good news hasn’t moved AONE lately.  There have been several intraday surges over the past few months, but it doesn’t take long for the stock to give up the gains.  Insider selling is certainly weighing on the stock.  The IPO lock up period of 6 months which prevents insiders from selling after an IPO, expired at the end of March and insiders certainly are cashing out to a degree.  Volume hasn’t been extraordinary on the sell side and AONE could be carving out a big double bottom base with this leg down, shaking out the last of the weak holders.  However, I’d more comfortable that a double bottom base is in the works only if AONE can surge back above the $15 level which is now resistance of the 50 day moving average.

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A123 battery tech. was tops in the Ebike world with its cylindrical cells until LiPo offered more capacity. But with the prismatic cells A123 is back ontop in my view.


the T.W. target is $11. but to be fair its quite late in the 4 month downslope to re-position the trade as bearish.


Thanks Boris for PT. Quite a bit of pressure with the insider selling, so maybe it can get going again once that subsides.


yeah i am really interested in the long term prospects and earnings power of the this company once it gets over this startup-ramp up lull. they said on the last conference call the business plan calls for 30%-ish gross margins. Now if they would just sell $1 Billion worth of product, by reducing prices with high vokume manufacturing, the shares might return to the old highs.

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