US Geothermal initiated with "buy"

10/16/07 - Pac. Growth Equities

NEW YORK, October 16 (newratings.com) - Analysts at Pacific Growth Equities initiate coverage of US Geothermal (UGTH) with a "buy" rating. The fair value is set to $4.60.

In a research note published yesterday, the analysts mention that the company is expected to commence operations at its first power plant, which will develop 13 MW of energy. US Geothermal has two properties at Raft River and Neal Hot Springs and has the potential to develop a maximum of 200MW of energy, the analysts say. The company is poised to benefit going forward from increased demand for Renewable baseload sources of power by utilities to meet the impending Renewable Portfolio Standards, Pacific Growth Equities adds.