Dutton Associates recently updated its coverage of SES Solar (SESI.OB) and maintained its rating of “Speculative Buy” with a $2.10 price target.
SES Solar was formed as a result of a September 27, 2006, reverse acquisition between SES and Societe d’Energie Solaire, a Swiss-based company that researches, develops, produces, and installs solar energy (photovoltaic or PV) products, including PV modules and roof tiles, with a special emphasis on high-quality products that can be architecturally integrated into new or existing structures.
Dutton believes that SES is well positioned to benefit from soaring demand for solar energy in Europe and worldwide once it consolidates production in a new plant in Geneva Canton, Switzerland early in 2008. This facility will be fully automated and will incorporate innovative manufacturing techniques, resulting in lower labor costs, higher quality electrical contacts, greater operating efficiencies, and higher production volumes.
Management expects to complete the plant by the end of 2007 and to initiate production in the first quarter of 2008.
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