Friday, 11 June 2010

AeroMechanical Grabs New Analyst Attention

AeroMechanical Services Ltd.
Basic Shares: 103.6 million
Fully Diluted: 115.4 million


Byron Capital Markets very recently published its first analyst report on AeroMechanical (AMA), setting a target price of $0.95, a level 2.5 times greater than the current price of $0.38 cents.

Mr. Nagaraj based his target price on a revenue estimate for this year of $12 million dollars, well ahead of last year's revenue of $5.1 million dollars. He's looking for revenues to jump to $24 million in 2011 with net income of $4.8 million or $0.04 EPS.

"AMA has unique products and a business model that has been refined over the years," Mr. Nagaraj stated in his 15-page report.

"With its partnerships, compelling product ofering and a recurring revenue model, AMA is poised to grow both top line and bottom line for a number of years," he added, concluding that he expects AMA to generate $60 million dollars in revenue within the next five years.

According to Byron Capital's website, Mr. Nagaraj holds both a Masters degree in Computer Science (1995, Dalhousie) and an MBA (2001, Rotman School of Management , University of Toronto).

Given AMA's technology of monitoring and broadcasting back to earth an aircraft's functions and operations it is interesting to note that Mr. Nagaraj holds multiple patents in the areas of broad band switching and telecommunications messaging systems.

Toronto-based Byron Capital Markets focuses on small and mid-cap market companies in several market segments, with increasing emphasis on special situation companies like AMA, alternative energy and rare earth and other non conventional mining and exploration.

To learn more about Byron Capital Markets, please click here.