Thursday, 18 August 2011


Neptune Technologies & Bioressources
Basic Shares: 48.2 million
Fully diluted: 53.9 million


Catalyst Equity Research Analyst, Robin Cornwell, bumped up his recommendation on Neptune Technologies stock from a Buy to a Strong Buy in his latest report issued today.

Mr. Cornwell stuck to his one-year share target price of $7. He highlighted the expected positive announcements from Nestle's and Yoplait's clinical trials on Neptune's Krill Oil as a food additive and recent U.S. distributor deals that are expected to dramatically increase demand to backstop his Strong Buy rating.

Interestingly, while Mr. Cornwell pegs his one-year target price at $7, Roth Capital analyst Joseph Pantginis called for a $9 share price in his recent initiating report.

Mr. Cornwell has forecasted Fiscal 2012 revenue of $22.3 million for a year-over-year increase of 34% while the Roth report called for a $25 million revenue target.

Similar differences applied to their revenue forecasts for fiscal 2013 with $30 million projected by Mr. Cornwell and $33 million by Mr. Pantginis.

On the next 12 to 18 months, Mr. Cornwell noted that most investors will have a sharp eye on Acasti`s phase II clinical trials.

But he added that:

"... we strongly believe the focus should also include potential exciting clinical trial results from Neptune’s two commercial partners in Europe, Yoplait (50% owned by General Mills) and Nestle. Positive clinical trial results would not only further validate Neptune’s NKO™, but would herald the introduction of new functional/medical food products. We estimate this would add over $2.00 per Neptune share on a net present value basis, just for starters."

To read Mr. Cornwell`s full report, please click here.