REpower Systems initiated with "buy"

12/14/06 - Deutsche Bank

NEW YORK, December 14 (newratings.com) - Analyst Alexander Karnick of Deutsche Bank initiates coverage of REpower Systems AG (RPW) with a "buy" rating. The target price is set to €87.

In a research note published this morning, the analyst mentions that the company’s EPS CAGR of 195% for 2006-2008 is higher than that of Nordex. With the 5MW turbine already installed in four test fields, REpower Systems is in well positioned to profit from the growing offshore demand, the analyst says. Deutsche Bank expects the company to witness a margin recovery to approximately 3% this year and to 5%-6% in 2007 and approximately 8% in 2008.