Danske Bank downgrades rating on REC

(ADPnews) - Nov 1, 2010 - Danske Bank last week cut its recommendation on Norwegian photovoltaic (PV) firm Renewable Energy Corporation ASA (OSL:REC), or REC, saying, "The bull ride ends here."

The rating was downgraded to "hold" and the share price target was lowered to NOK 22 from NOK 25.

REC posted better-than-expected figures for the third quarter of 2010, yet the share has gained more than 12% in the past three months.

"The company will present its long-term cost estimates at its investor day next week and we doubt that they will surprise on the upside," Danske Bank said.

The estimates for the earnings before interest, tax, depreciation and amortisation (EBITDA) were downgraded by 5%-6% for 2011-2012.

(NOK 1.0 = USD 0.169/EUR 0.122)

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