Yesterday before the bell, Canaccord Adams initiated coverage on Rino Intl (RINO) with a Buy rating and price target of $34

Hat tip to StreetInsider.com for the following analyst comment:

“RINO is a China-based environmental protection company. Its core businesses are flue gas desulphurization (FGD), wastewater treatment, and anti-oxidation equipment for the Chinese steel industry. It has also won its first contract to provide sludge-treatment technology for municipal wastewater treatment plants. The Chinese government has made environmental protection a priority. It is enforcing higher environmental standards and significantly increasing investments in pollution control. We believe there are tremendous opportunities for environmental companies like RINO.”

“RINO is trading at 14.5x 2010E fully-taxed EPS, below the median peer group P/E of 18-20x, despite its superior growth prospects. Our target price is based on 17x 2010E EPS of $2.00 (fully taxed), in line with the median valuation of the sector. We see substantially higher revenue and earnings growth for RINO once the company completes its capacity expansion and if its new technologies are successful in their first launch.”

Shares aren’t benefiting from the call yesterday because the stock has already staged a big run and needs to consolidate gains after another recent breakout.