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The share in REC has plunged more than 88% since peaking two years ago and fell yesterday to an all-time low of NOK32.30, down 6.05% on the day on the Oslo Stock Exchange. Since the solar group posted its report for the third quarter of 2009 last week, the stock has lost 26%.
Evensen considers this is mainly due to REC, unlike many competitors, having not announced concrete targets for its production cost.
"REC is the only company which does not have a plausible plan for how much it can produce for. In June last year, the company unveiled plans to produce for less than EUR1 per watt for wafer, solar cells and solar panels in the upcoming factory in Singapore, but has not updated the figures since then. Now we witness several producers saying they can produce for below USD1 per watt. As REC is silent, it is difficult to form an opinion on the company and now it is paying for that," Evensen told DN.
However, Evensen has a share price target of NOK45 on REC.
"I think the company has plans, which imply that it is able to compete at better terms than it admits. If it does not do that, the share is worth much less and the price will continue to fall," he said.
(EUR1 = NOK8.5, EUR1 = USD1.48)
Comments on this story may be sent to nbr.feedback@nordicbusinessreport.com
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