REC delivered a decent Q1 report with a positive EBITDA and a slight increase in cash. However, with uncertainties on the trade front and a weak short- to medium term outlook for polysilicon, it would be premature to restart Moses Lake. We arrive at a fair value of 3.5 NOK/sh based on our updated probability weighted scenario model, and as there are too many moving parts to take a firm view on the path forward, we downgrade to Hold.
15 May 2020
All options intact, but many unknowns
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All options intact, but many unknowns
REC Silicon ASA (0FS8:LON) | 282 0 0.0% | Mkt Cap: 1,187m
- Published:
15 May 2020 -
Author:
Daniel Stenslet -
Pages:
12
REC delivered a decent Q1 report with a positive EBITDA and a slight increase in cash. However, with uncertainties on the trade front and a weak short- to medium term outlook for polysilicon, it would be premature to restart Moses Lake. We arrive at a fair value of 3.5 NOK/sh based on our updated probability weighted scenario model, and as there are too many moving parts to take a firm view on the path forward, we downgrade to Hold.