Imperial Capital (NYSE:IMP) has initiated coverage on U.S. Geothermal (AMEX:HTM), starting them off with an "Outperform," based on available financing for projects and low risk.
"We expect the shares to begin to appreciate as the company executes on milestones that allow it to draw upon financing for projects with attractive economics and low confirmation risk. While we think the near-term outlook for sales and earnings is modest, in part because U.S. Geothermal’s operating assets are smaller-scale with lackluster PPA rates, our NPV analysis suggests the shares are undervalued."
The valuation range for Geothermal is from $1.00 to $1.50.
Geothermal said Friday it has "has granted options pursuant to its 2009 Stock Incentive Plan to directors, employees and consultants to acquire 1,300,000 shares in capital of the company. The options are exercisable at a price of US$0.86 per share for a term of 5 years expiring September 10, 2015. The company also awarded 705,000 restricted shares to directors and employees. The options and shares will vest subject to the terms set forth in the Company's 2009 Stock Incentive Plan."