Terra Markets upbeat after REC's trip to Singapore

(ADPnews) - Nov 8, 2010 - Terra Markets last Friday highlighted as a "buy" candidate Norwegian photovoltaic (PV) equipment maker Renewable Energy Corporation ASA (OSL:REC), or REC, after positive news from the company's field trip to Singapore.

REC said last Tuesday that after a successful construction and ramp-up phase, production at its EUR-1.3-billion (USD 1.8bn) greenfield integrated wafer, cell and module production facility in Singapore would approach nameplate capacity towards year-end.

The broker thinks the market will upgrade its estimates in the wake of the visit.

Terra Markets added that it is likely to raise its share price target to NOK 27.

The good news, according to Terra Markets, is REC's guidance for production of wafers and modules that exceeded both the broker's and the consensus estimates.

REC also said it will be able to ramp up capacity at the factory in Singapore by 35% without considerable investments by 2012.
It also indicated that investments for 2011 will be lower than expected.

The risk for REC is high, according to Terra Markets, and is related to supply and demand growth, which obscures visibility.

By 1013 CET on Monday, the stock in REC had added 0.94% to NOK 19.38 on the Oslo Stock Exchange (OSE).

(NOK 1.0 = USD 0.173/EUR 0.124)

Choose your newsletter by Renewables Now. Join for free!