Citi Initiates Coverage on Energy Recovery (ERII) with a Hold

August 14, 2008 7:49 AM EDT
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Price: $21.11 +2.28%

Rating Summary:
    6 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 70
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Citi initiates coverage on Energy Recovery, Inc. (Nasdaq: ERII) with a Hold. Price target $11.

Citi analyst says,"...Our rating is driven by valuation concerns only, not fundamentals...The key investment highlight for the company is the prospects for the industry itself. ERI provides an enabling product for the specific water market of sea water reverse osmosis desalination – which has been growing at a rate of 19%-20% overall, with large projects, where ERI’s product is increasingly utilized, growing at a faster rate of 40%-50%. We believe that ERI’s product, which drives down the cost of desalination, is a driver of the growth in new projects planned. Currently, there are few pure plays in the water equipment industry."

Energy Recovery, Inc. is a global developer and manufacturer energy recovery devices utilized in the water desalination industry.

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