Analyst says positively surprised with Norwegian REC Q2 2011
Jul 20, 2011 - The underlying results of Norwegian solar power company Renewable Energy Corporation (OSL:REC) for the second quarter of 2011 were a positive surprise, analyst with ABG Sundal Collier, Andreas Strand, said on Tuesday.
REC moved to a pretax loss from continuing operations of NOK 6.287 billion (USD 1.138.7bn/EUR 805.3m) in the second quarter of 2011 from a NOK-866-million profit a year earlier, on the back of huge write-downs. The impairment of some NOK 6.5 billion, made on the Norwegian wafer operations and the factory in Singapore, were however already factored in the share price, the analyst said.
"The figures are good. If one looks below the surface, they are very positive," Strand said. "The positive points are very strong underlying operations and good cash flow," he added.
ABG Sundal Collier has a "hold" recommendation on REC with a share price target of NOK 9.
The share in REC jumped 10.13% to NOK 9.14 in Oslo trading yesterday.