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Bloomberg reported that shares of A123 Systems Inc. (NASDAQ:AONE) inched down after a Goldman Sachs analyst, Mark Wienkes, downgraded the company.
Bloomberg reported that shares of A123 Systems Inc. (NASDAQ:AONE) inched down after a Goldman Sachs analyst, Mark Wienkes, downgraded the company.
As quoted in the market news:
Late Monday, analyst Mark Wienkes downgraded A123 to “Sell” from “Neutral,” saying the company is likely to need more cash in the next 12 to 15 months, as the ramp-up in sales of car batteries is going slower than expected. Some of that cash could come from its recently established credit line, he said. He put a $2.50 price target on the stock, down from $5.
Last week, General Motors said A123 will supply the battery for an all-electric version of the Chevy Spark, driving A123′s shares up. But Weinkes said the near-term market for this city-oriented car is probably limited. He also said sales of the all-electric Nissan Leaf and the plug-in hybrid Chevy Volt have been weak, and he is less optimistic about sales of electric vehicles in the next one to three years.
