BPI sees news from USA "positive" for EDP Renovaveis

(ADPnews) - Dec 21, 2010 - The extension of the US cash reimbursement programme for the renewable energy sector is "positive" for Portuguese green power firm EDP Renovaveis (ELI:EDPR), according to BPI Equity Research.

Last Friday, the US President Barack Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which includes a one-year extension of the investment tax credit (ITC) cash reimbursement programme, EDP Renovaveis said in a filing with Portugal's bourse regulator CMVM yesterday.

All new wind farms of EDP Renovaveis planned for the 2011-2012 period are expected to take advantage of the ITC cash reimbursement programme, the company added in the same filing.

The news is "positive" although it was expected, analysts with BPI said. However, this does not solve the problem of the lower projections for new installations in the country, the specialists added.

BPI has a share price target of EUR 6.35 on EDP Renovaveis with a "buy" recommendation.

At 1010 local time today, shares in EDP Renovaveis traded at EUR 4.452, up 0.5%, on Euronext Lisbon.

(EUR 1.0 = USD 1.317)

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