Wunderlich Reiterates Sell Rating, $0.50 PT for A123 Systems

In a report published earlier today, Wunderlich Securities reiterated its Sell rating and $0.50 price target for A123 Systems, Inc.

. Wunderlich went on to say “Yesterday, A123 Systems reported it developed a new material to be used in li-ion batteries that one day may solve heating and cooling issues plaguing existing li-ion batteries. The operative words are "some day" because there is no product. According to channel checks we made on Monday, new battery technologies are a dime a dozen and it may take years to get into production and qualify with customers. Years are not what A123 has. Indeed, according to our analysis it will need $400 million more than it's got to make it through the next 18 months, and even then it would not be enough. We reiterate our Sell rating and our $0.50 price target, which would be zero except that we believe the factory has some residual scrap value.” A123 Systems, Inc. closed yesterday at $1.58.