EL DORADO HILLS, Calif., Mar. 27, 2008 (Business Wire) -- Dutton Associates updates its coverage of Raser Technologies (NYSE:RZ) upgrading to a Strong Speculative Buy rating and a $16 price target. The 9-page report by Dutton senior analyst Gerald A. Rothstein, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
There have been a number of developments, which, in our opinion combine to significantly increase the attraction of RZ. As a result of the developments and the fact that the stock has declined significantly, we are changing our rating to Strong Speculative Buy with the same price target of $16 we used in our original recommendation. The two most major positive developments at the Company were: 1) The receipt of a commitment letter from Merrill Lynch to provide non-recourse financing for the Company's first 10.5 Megawatts (MW) geothermal plant in Truckee, NV; the letter contemplates the financing of up to 155 MW by Merrill and; 2) The signing of a power purchase agreement (PPA) by the City of Anaheim. We consider them very important because they represent endorsements of the economics and technology by both a sophisticated financial institution (in a period of general risk reduction on the part of financial institutions) and a large municipality. Furthermore, the terms of the Merrill agreement provide the first independent visibility on what the much talked about monetization of geothermal plants might provide to the Company. Korea's Hyundai Heavy Industries has agreed to manufacture and market products containing Raser's Symetron technology, another endorsement by a sophisticated company. PG&E has agreed to buy two plug in hybrid SUVs from the Company; these vehicles will use the Symetron technology as well.
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Dutton Associates is one of the largest investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $39,500 from the Company for 4 Research Reports with coverage commencing on 1/30/2007. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
