ersol Solar Energy downgraded to "add"

08/13/07 - Dexia Securities

LONDON, August 13 (newratings.com) - Analysts at Dexia Securities downgrade ersol Solar Energy (ES6) to "add." The target price is set to €70.

In a research note published this morning, the analysts mention that the company is expected to post mixed 2Q results, scheduled to be reported on August 14, with EBIT declining substantially and top-line growing significantly on a y/y basis due to the smooth execution of the Spanish project. ersol Solar Energy is likely to have achieved 20% sales growth in the quarter, the analysts say. The company’s EBIT has been adversely affected by rising costs for both thin film plant and silicon cells, Dexia Securities adds. The downgrade in rating is based on valuation, according to the analysts.