Shares of lithium-ion battery supplier A123 Systems (AONE) jumped more than 5 percent in mid-day trading after a research analyst at Craig-Hallum Capital Group initiated coverage on the co.’s stock with a Buy rating and $15 price target. The new price target suggests potential upside of almost 90% from where the stock was trading in the premarket session.
Shares of AONE rose 34 cents, or 4.48%, to $7.93 in midday trading on the Nasdaq.
A123 said late Monday it signed a production agreement with electric truck maker Navistar Int’l (NAV) to supply lithium-ion battery systems for electric vehicles. A123’s battery pack is intended to allow the Navistar vehicles to travel about 100 miles solely on electricity before needing a recharge. Financial details of the deal were not disclosed.