2011 Likely To Be Huge Year For ADES
Analysts at Pritchard Equity Research reiterate their "neutral" rating on ADA-ES Inc (NASDAQ: ADES). The target price for ADES is set to $8.
“ADA-ES Inc (NASDAQ: ADES) reported a loss of 50c vs. our expectation for a loss of 22c and the street's expectation for a loss of 30c due to lower than expected revenues (winding down ACI sales and consulting revenues) and higher than expected operating expenses (ongoing litigation costs),” Pritchard Equity Research mentions.
According to the analysts, “The long term story remains unchanged. ADA's most significant revenue growth should occur once federal mercury emission regulations are enacted- a draft by the EPA should be ready by March 16, 2011 with the final rule in place no later than November 16, 2011. Until then we do not see any significant short term catalysts. ADES continues to work on all fronts- the AC plant is up and running, the first two furnaces are operational, third and fourth are expected to be running before the year end; the first DOE CO2 related contract revenues are expected to be realized in Q4. The company is still expecting a possible extension of the Section 45 tax break and if and when this happens, this will be a positive on the CyClean side.”
“ADES is on the right track and 2011 is hopefully going to be a huge year for the company. However, we have two to three quarters with no significant upside in operations expected until then,” the analysts add.
