One to Watch: Clipper Windpower
Clipper Windpower
93.5p unch
Scotsman says BUY
The new chief executive has lowered guidance for 2010 – which disappointed the market – so as to ensure no further downgrades in our view. We are interested in Clipper's development assets, which we believe are potentially very valuable.
Improving gross margins and a large provision for any further remediation should ensure a much-improved set of results in 2010. Our DCF on the turbine business values it at 115p and we value the development portfolio at 100p per diluted share. We derive our price target of 215p, believing the shares could more than double from here. With 57p a share of cash, we believe there is downside protection too.
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