DnB NOR Markets resumes Norwegian REC with "buy" rating

Sep 22, 2011 - DnB NOR Markets resumed on Wednesday monitoring Norwegian solar power company Renewable Energy Corp (OSL:REC) with a "buy" recommendation and a share price target of NOK 11.

According to the broker, the current capacity in polysilicon, including net interest-bearing debt (NIBD), alone should give more than the current valuation in the market.

"Our valuation of this business alone corresponds to NOK 8.20 apiece," analyst Ole-Andreas Krohn said, adding the broker sees further potential in REC's facility in Singapore.

The analyst also believes in further expansion in polysilicon and a possible takeover interest.

Triggers for a share price increase could be new contracts in polysilicon, possibly termination of wafer contracts, Krohn said.

By 0958 CET today, shares in REC had lost 3.75% to NOK 6.545 on the Oslo Stock Exchange (OSE).

(NOK 1.0 = USD 0.177/EUR 0.128)

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