ErSol Solar Energy "buy"

05/11/07 - Dexia Securities

LONDON, May 11 (newratings.com) - Analyst Peter Vanassche of Dexia Securities maintains his "buy" rating on ErSol Solar Energy AG (ES6). The target price is set to €70.

In a research note published this morning, the analysts mention that the company is expected to report its 1Q sales, EBIT and EBIT margins at €26.1 million, €4.1 million and 16%, respectively. By producing modules on its own, ErSol Solar Energy is likely to directly access the market and its own channels, the analyst says. The company is expected to reaffirm its EBIT guidance for FY07 and FY08 of at least €20.3 million and €70-80 million, respectively, Dexia Securities adds.