Cantor Fitzgerald analyst Adam Forsyth says OPG Power's (LON:OPG) plant flexibility and its ability to deliver on time means the company remains a compelling investment. Output from OPGs power plants rose to 600 megawatts in the quarter ended September 30 compared with 270 megawatts in the same period last year The company currently has five plants in operation at Chennai and Gujarat, which as Forsyth notes, can take a mixture of Indian and imported coal and are both situated near ports. Cantor Fitzgerald has 134p target price on OPG shares which currently trade at 83p each.
The cost reductions are significant for me. 10% off 60m p.A. is a big deal for the existing plant, and should apply to all of the new capacity for as long as the price holds. Similarly for interest rates. Comments regarding debt repayment on commissioning are helpful. Load factor exit rates for October look OK. Happy.
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