Wednesday, 21 February 2007

Catalyst to Revise Target


Robin Cornwell, analyst for Catalyst Equity Research which provides coverage on NTB, released a comment today regarding Neptune's recent functional food announcement.

Catalyst's current 12-month target for Neptune is $7.50 per share, its mid term (36 month) target is $25.75 per share.

The existing targets do not include much if any value for Functional Foods.

Robin commented:
"We are in the process of revising our forecasts and adding Functional Food to our estimates and valuation for NTB. Based on NTB negotiating functional food agreement(s) with a major food company(s) for a new food product(s) we have determined based on our preliminary estimates that functional food could add significantly to our Net Present Value (NPV) analysis."
"We have assessed the impact of functional food on NTB and on a preliminary basis have concluded that this business could increase our NPV estimate for NTB by $4.50 to $9.00 per share."

Today, Neptune's stock is trading in the $6.50 range.