Michigan-based Energy Conversion Devices, Inc. (ENER) is a technology, product development, and manufacturing company engaged in the invention, engineering, development and commercialization of new materials, products and production technology in the fields of alternative energy technology and information technology.
In 2009 fiscal first quarter, Energy Conversion Devices' total consolidated revenues for the quarter were $95.8 million, an increase of 16% over the $82.4 million in revenues from the fourth quarter of fiscal 2008, and 104% higher than revenues of $47 million in the first quarter of fiscal 2008.
We remain optimistic about ENER's long-term potential success in the high growth alternative energy industry, given increased activity in solar power projects and extension of the federal ITC. Looking forward the story will continue with geographically diversified sales pipeline touching nearly $2 billion, intended expansion to 1GW by 2012, reducing cost per watt, lower re-structuring costs, committed supply agreements and improving material cost through expansion of supplier base.
Nevertheless, we note the stock's high volatility, pending sale of its Cobasys joint venture, higher pre-production costs, and a history of EPS losses till Q2 08, without meaningful valuation metrics, collectively show potential for moderate-to-high returns yet with high risk. Accordingly, we maintain a speculative Buy recommendation on ENER common stock with a six-month target price of $42.00, representing 10.4% upside potential.
Read the full analyst report on ENER
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