Renewable Energy Holdings "buy," estimates reduced

09/24/07 - Panmure Gordon & Co

LONDON, September 24 (newratings.com) - Analyst Mark Davis of Panmure Gordon maintains his "buy" rating on Renewable Energy Holdings (RTU), while reducing his estimates for the company. The target price is set to 80p.

In a research note published this morning, the analyst mentions that the company’s interim results, with 27% y/y revenue growth, indicate significant progress after a poor performance in Germany last year. Renewable Energy has entered into collaborations for its wave technology, CETO, with EDF Energies Nouvelles and Carnegie Corporation, the analyst says. The EPS estimates for 2007 and 2008 have been reduced from (2.5p) to (4.2p) and from 1.0p to (1.3p), respectively, representing new commissioning dates for Poland and the first-time inclusion of Wales.