Goldman Sachs Upgrades AONE To Buy

Goldman Sachs has upgraded its rating on A123 Systems

from Neutral to Buy, given its good risk to reward ratio. Goldman Sachs writes, in its report, “We are upgrading AONE shares to Buy from Neutral given a better than 2:1 risk/reward and maintaining our $9 price target, offering 63% upside potential. We think the market is now discounting just the current chapter of the story, although specific catalysts that improve revenue visibility lie two-to-six months on the horizon. These proof points support the near- term stock opportunity back towards $9/share, with margin visibility needed to go higher. Also, a stronger balance sheet helps to de-risk the capacity expansion, improves A123's competitive position, and thus, lends credibility to what we now view as a more realistic revenue ramp.” The price target on AONE remains at $9. AONE closed Friday at $5.51.