Paradigm Capital is a research driven investment dealer with offices in Calgary and Toronto.
"We understand that EEStor has been making rapid and numerous strides toward delivering a pre-production ESU to Zenn and that the unit delivered will be consistent with Zenn's specifications," Paradigm analyst Marvin Wolff said in a note.
"Zenn management remains confident that EEStor will deliver a pre-production ESU to Zenn in 'the not-too-distant future'."
Citing the delays, Wolff cut his one-year target price to C$5.45 from C$10.90. Zenn stock traded as high as C$6.89 in early 2008, the stock was worth C$2.30 on the TSX Venture Exchange on Friday, up 22 Canadian cents.
Wolff has a "buy" rating on Zenn shares because test results on EEStor's technology development to date have eclipsed the performance of other electrical storage units.
"While development risks still exist, we believe one of the larger risks of this technology has been overcome," Wolff wrote.
Zenn has exclusive global rights to sell the battery for mid-sized vehicles under 1,400 kg (3,086 pounds) and to retrofit vehicles more than one year old.
Thomas Weisel Partners analyst Dilip Warrier cut his sales estimates and chopped his stock target to C$2.50 from C$5.00 after Zenn reported quarterly results last week. He cited "increased uncertainty" of the battery being commercialized.
"With no incremental news on the EEStor front, we remain neutral on Zenn until we see evidence of progress toward a commercial (battery) prototype and obtain a better understanding of the company's business model moving forward," he said in a note.
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