UPDATE: Goldman Sachs Lowering Price Target On Ener1

Goldman Sachs is out with a research report on Ener1, Inc. (NYSE: HEV) and is lowering its price target to $1. It has a Neutral rating on shares.

In a note to clients, Goldman Sachs writes, "Ener1 announced a delay in the release of its 10-Q, which we believe may be related to a potential prior-period restatement. Although we are encouraged by Ener1's improved near-term funding situation and think the technology and manufacturing assets set a non-zero floor, we lower our six-month price target to $1 from $3.25 to reflect a higher market discount rate and company- specific factors, including a longer ramp in transportation sales. On funding specifically – last week, Ener1 announced a stock purchase agreement with Aspire Capital for up to $50 mn over the next 24 months. The agreement gives Ener1 the option to sell stock to Aspire, conditional on the stock price remaining above $0.50 per share. This follows the June announcement of a $15 mn line of credit from majority owner Bzinfin and provides a more substantial near-term funding bridge as the company re-groups following the Think write-down."

Shares of HEV closed at 79 cents yesterday.