SAN FRANCISCO, Feb. 10, 2012 /PRNewswire/ -- Merriman
Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc.
(OTCQX: MERR), initiated equity research coverage on Enova Systems,
Inc. (NYSE-AMEX: ENA) ($0.39) on
February 8, 2012 with a Buy
rating.
(Logo: http://photos.prnewswire.com/prnh/20100914/SF64919LOGO)
Enova Systems is a clean technology company that focuses on the
production and marketing of power management and conversion systems
for the automotive industry.
Research analyst, Jesse Herrick,
highlighted these themes in his initiation report:
- Green for Free (GFF) program will be a game-changer for
Enova and the step van market. Enova formed an alliance with
FCCC in November 2011 to initiate the
GFF program under which FCCC's All-Electric Step Van chassis will
be powered by Enova's Omni drive system. FCCC has a 90% market
share of the U.S. and Canadian diesel-driven medium-duty commercial
vehicle space with customers including UPS, FedEx, Cintas, and
Aramark available to provide a ready market for the GFF
program.
- Omni drive systems will put Enova on a different growth
trajectory. Enova's Omni drive systems, which are compatible
with a wide range of vehicle drive systems, are expected to
generate more than 45% gross margins, boosting the overall gross
margin of Enova to more than 35%. The Omni product line is
comprised of the Omni Inverter, the Omni Charger, and the Omni
DC/DC Converter.
- Enova has been steadily building up a customer
portfolio. Enova was the first company to market a commercial
PHEV, in 2006, and has successfully delivered more than 2,500
hybrid and electric systems globally, steadily building up its
customer portfolio. The company has established relationships with
some of the strongest brands in the automobile manufacturing
industry, including Navistar, Smith Electric Vehicles, China-based First Auto Works (FAW), and
Daimler Freightliner.
- Attractive valuation. We have arrived at a 12-month
price target of $0.71 for Enova using
average peer EV/Sales multiples, implying considerable upside from
current levels. We feel that the GFF program will boost Enova's
revenue in 2012 and 2013, through a combination of fresh orders,
new customers, and preservation of existing relationships.
Members of the media can obtain a copy of this Merriman Capital
research report by e-mailing editorial@merrimanco.com.
About Merriman Capital, Inc.
Merriman Capital, Inc. is an investment banking firm providing
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differentiated research for high growth companies. We also provide
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Inc. is a wholly owned subsidiary of Merriman Holdings, Inc.
(OTCQX: MERR) and is the leading investment banking firm for OTCQX
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Note to Investors
This press release contains certain forward-looking
statements based on our current expectations, forecasts and
assumptions that involve risks and uncertainties. This release does
not constitute an offer to sell or a solicitation of offers to buy
any securities of the Company. Forward-looking statements in this
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hereof. Our actual results may differ materially from those stated
or implied in such forward-looking statements, due to risks and
uncertainties associated with our business, which include the risk
factors disclosed in our Form 10-K/A filed on April 28, 2011 and our Form 10-Q filed on
November14, 2011. Forward-looking statements include statements
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28, 2011 and 10-Q filed on November
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www.merrimanco.com. Please click on "Investor Relations."
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