UBS Maintains a 'Buy' on Ocean Power (OPTT); Continued Grogress on Key Initiatives

UBS maintains a 'Buy' on Ocean Power (NASDAQ: OPTT), PT lowered from $14 to $11.

UBS analyst says, "OPT reports F4Q2011 loss of ($0.52) per share vs UBSe of ($0.27). F4Q sales of $1.9M were down ~20% YoY from $2.4M (tough comps); the decline in revenue was primarily driven by their US Navy Deep Water Active Detection System project nearing completion. Backlog of $8.9 million increased from $5.7 million in the prior year."

"Adjusting estimates to reflect current backlog and outlook - We now expect losses of $1.45 and $0.95 in FY12 and FY13, respectively. Based on FY11 cash burn rate of ~$18.5m, OPT’s cash position can fund operations for ~2.5 years (although we note mgmt expects to use less cash in FY12)."

For more ratings news on Ocean Power click here and for the rating history of Ocean Power click here.

Shares of Ocean Power closed at $3.80 yesterday.

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