Valence Technology's (NASDAQ:VLNC) Diversifying Manufacturers Paying Off

Saying Valence Technology's (NASDAQ:VLNC) strategy of focusing on a variety of manufacturers is paying off for them they could approach the breakeven point quick than believed.

Needham said, "We believe corporate focus on electric vehicle (EV) adoption is starting to accelerate. This bodes well for Valence Technology which has been engaged with multiple manufacturers that have delivered product to high-profile customers. We are raising our near-term estimates to reflect increased industry activity that suggests the company could reach breakeven sooner than anticipated.

"We are raising financial estimates to reflect the potential for accelerating demand for the company's products. Our fiscal 2012 estimate is for revenues of $101.0 million (from $91.0 million) with operating EPS of $0.01 (from -$0.01). In our view, the company will reach breakeven EPS in FY1Q12 (June-ending) – a quarter earlier than previously forecast."

Needham & Company maintains a "Buy' on Valence Technology, which closed Monday at $1.40, up $0.02, or 1.45 percent. They increased their price target on them from $2 to $3.