Deutsche Bank is initiating coverage on Ener1 Inc. (HEV) this morning with a Buy rating and price target of $11.

Hat tip to StreetInsider.com for the following analyst comment:

“Ener1’s technology is highly regarded, it has a strong management team, and we expect it to have similar capacity to its primary US competitors (i.e., JCI, A123, LG Chem) through mid-decade. Most importantly, the company has contracts that should generate an annual run-rate of $150+ million by 2H 2010…Based on our analysis of automaker’s product disclosures, and discussions with global suppliers, we estimate the world’s automakers will introduce at least 120 hybrid, plug-in hybrid, and electric vehicle models onto the market by 2012, compared with 29 (mostly hybrid) vehicles on the market today, and 13 in 2008. Overall, we believe that by 2020, 17% of the global automobile market could be comprised of hybrids, plug-in hybrids, and fully electric vehicles, and we project a $66 bn market for the advanced lithium ion batteries that make these vehicles possible. We expect Ener1 will be an early-mover in lucrative EV/PHEV batteries.”

Shares of HEV are recovering this morning and up 10% after an ugly two week plunge.