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A123 Systems (AONE) PT Lowered To $6 By Deutsche Bank, 'Buy' Maintained

 March 09, 2012 04:15 PM


Deutsche Bank (DB) lowered its price target on shares of A123 Systems Inc. (NASDAQ:AONE) to $6 from $10, while maintaining its "Buy" rating.

AONE reported loss of $0.55 per share (excluding impairment charges) versus DB's $0.45 loss estimate. Revenues of $40.4 million were up 76% year-over-year, but down 37% sequentially.

Operating loss of $70 million compared to DB's $55 million loss estimate. The miss was more than explained by a one-time $10.6 million warranty accrual and $10.1 million of manufacturing inefficiencies.

Revenue is expected to decline sequentially in Q1 (related to timing of grid revenue recognition); therefore, a margin inflection point that could represent a meaningful catalyst is not likely until the second half of 2012. The brokerage maintained  its rating based on valuation.

[Related -A123 Systems (AONE) Soars After Court Approves 'First Day' Orders To Support Business]

A123 Systems engages in the design, development, manufacture, and sale of rechargeable lithium-ion batteries and battery systems worldwide. The company''s battery products are based on its proprietary Nanophosphate technology for application development in the transportation, electric grid services, and commercial markets.

AONE is trading up 4.49% at $1.63 on Friday.

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