) with an outperform recommendation.
Analyst Jesse Pichel believes Hoku is one of the best-positioned component suppliers to the emerging fuel cell (FC) industry. The analyst says Hoku engineers and makes polymer electrolyte membranes, as well as membrane electrode assemblies, which are key components of proton exchange membrane FCs. The analyst thinks the company's unique proprietary technology will allow for lower cost and better performing FCs. As the industry nears commercial adoption (beginning in 2006), the analyst thinks that Hoku will benefit as a key supplier. The analyst sees 10 cents fiscal year 2006 (ending March) earnings per share and 25 cents earnings per share for fiscal year 2007. Pichel set a $9 price target on the stock.