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UBS Maintains a 'Buy' on Ocean Power (OPTT); Review of Fiscal 2Q Results

December 12, 2011 12:16 PM EST
OPTT Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 26
UBS maintains a 'Buy' on Ocean Power (NASDAQ: OPTT) price target lowered $1 to $10.

UBS analyst says, "OPT reports F2Q2012 loss of ($0.38) per share vs UBSe of ($0.32): F2Q sales of $1.5m declined from $1.9m in fiscal 2Q11 and $1.9m last quarter, primarily due to two projects that are nearing completion. However, the backlog rose to $8.8m, from $7.1m last quarter, primarily because of a $3m grant from the EU for a project in Spain."

"Update on key initiatives - During F2Q, OPT successfully deployed an autonomous PowerBuoy in NJ for the U.S. Navy, and OPT believes the market for these buoys will include maritime security, O&G platforms, fish farming, and desalination. OPT still expects to deploy a PB150 in Oregon (Reedsport) in mid-2012. Mgmt noted continued progress in its relationship with Mitsui in Japan, and it expects “significant developments in 2012” towards a 10MW+ power station. In Australia, the new Carbon Tax law will create a new funding source for renewables that may supplement the A$66m grant previously awarded."

For an analyst ratings summary and ratings history on Ocean Power click here. For more ratings news on Ocean Power click here.

Shares of Ocean Power closed at $3.18 yesterday, with a 52 week range of $2.33-$6.39.


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