Genex Power has announced the extension of a number of agreements to September 30 for its K2-H pumped hydro project. While the capital required for the project is increasing, Genex is in discussions with the government's Australian Renewable Energy Agency which the broker notes is keen to provide hand-outs.

There remain a few key issues to be resolved, hence while the broker sees significant upside potential there are also risks. Speculative Buy retained, target rises to 37c from 35c.

Sector: Utilities.

Target price is $0.37.Current Price is $0.20. Difference: $0.17 - (brackets indicate current price is over target). If GNX meets the Morgans target it will return approximately 46% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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