Friday, 20 April 2007

Catalyst Updates Neptune Target.


Mr. Robin Cornwell of Catalyst Equity Research has increased his one year target on Neptune from $7.50 to $18.00 and his two year target to $36.00.

Mr. Cornwell states the following, "In our original valuation, we had focused primarily on the near-term Nutraceutical and longer-term Pharmaceutical potential of Neptune primarily in the cardiovascular area. Accordingly, we set two valuation parameters; first, Neptune over the short term as a manufacturer and supplier of NKO™ to the nutraceutical market (excluding the functional food market potential) and secondly Neptune as longer term supplier to the pharmaceutical market. Total combined valuation of the nutraceutical and cardiovascular pharmaceutical was estimated at $25.75 per Neptune share."

"The Functional Food business component of Neptune Technologies & Bioressources Inc. (Neptune) appears to be more of a near-term factor than we had previously anticipated. In fact our original analysis and valuation (report dated August 28, 2006) did not include any value for Functional Food applications as this component seemed to be beyond our time horizon. In this report, we assess the potential of the Functional Foods business on Neptune and have concluded that it would incrementally add $10.50 per Neptune share on a Net Present Value (NPV) basis, assuming the launch of 4 new successful Functional
Food products over the next 3 to 4 years. "

Click here to view the update.