A123 Systems announces battery recall II - Wunderlich (1.49 )
Wunderlich notes, yesterday, AONE announced a recall of batteries that had gone to some of its transportation customers. The cost has been estimated by the co to be $55 mln but may be higher or lower. The impact of the recall will be spread over the next three quarters because the co couldn't handle it all at once. Firm believes the co did the right thing by getting the issue out in the open as quickly as it did. Firm reiterates Sell rating on AONE and its $0.50 price target, which has nothing to do with this recall.