The coverage is beginning to come out on A123 Systems (AONE) and the first round is generally positive with some bullish comments coming out of Deutsche Bank. 

Bank of America initiates with a Hold rating and $17 price target.

Morgan Stanley has initiated coverage an Equalweight which I assume is similar to a Hold rating.

Deutsche Bank initiates coverage with a Hold rating and price target of $17.

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

“A123 Systems’ proprietary battery materials have broad applicability…in a number of growing segments, including consumer products, grid services, and automotive, which we believe will be the largest, by far. And the company’s commercial success in this arena so far has been very impressive particularly considering the fact that A123 competes against a number of large and well-established competitors. Co’s including BMW, Daimler (DAI), SAIC (SAI), BetterPlace, Magna, BAE Systems, GM and Chrysler have all recognized A123’s innovation…We estimate A123 should be able to achieve close to $700 million/$1.2 billion/$2.1 billion in revenue in 2012/2013/2014 just from automotive opportunities.”

UPDATE

Lazard Capital has initiated coverage with a Buy rating.

Shares of AONE are down about 1% in premarket trading.