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Shares of Energy Conversion Devices (ENER: sentiment, chart, options) are up roughly 6% this morning following at upgrade at Broadpoint from "neutral" to "buy." There is still room for the stock to benefit from additional upgrades from Wall Street. According to data from Zacks, the stock has earned 4 "buy" ratings and 4 "holds."
The stock could also benefit from price-target revisions. According to Thomson Financial, the average 12-month price target for ENER stands at $69.20, which is just 2% above the equity's current price. Any price-target upgrades could add fresh buying pressure to the shares.
For those not familiar with Energy Conversion Devices. The company makes products that generate and store power and store information electronically. Through its Cobasys joint venture with Chevron, it makes rechargeable batteries to power items ranging from consumer electronics to electric vehicles. Subsidiary United Solar Ovonic makes flexible solar panels for telecom, lighting, and other uses. In addition, the firm licenses its optical memory storage technology to Sony, Toshiba, and others. ENER's thin-film materials (optical and vapor barrier films) are used in beverage packaging and solar-controlled windows.
Technically Speaking
After last week's sharp pullback to support at the 60 level (which also coincides with stock's 10-week trendline), the shares of ENER have jumped roughly 6% this morning and could be ready to resume their uptrend. The security has climbed higher since late January, gaining more than 230% along the way. Throughout this rally, the stock has been supported by its 10-week moving average. With the equity spring-boarding off this trendline, ENER could be poised to make a run at its all-time high of $83.33, which was reached in June 2008. |
