Monday, 18 June 2012

Catalyst Research Ups Neptune & Acasti Price Targets


Neptune Technologies & Bioressources
TSX: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million
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Toronto based, Catalyst Equity Research published two updated reports today, one for Neptune Technologies and one for Acasti Pharma (57% owned by Neptune). In the reports, Catalyst Analyst Robin Cornwell, raises his price targets for Neptune to $8.75 from $7 and Acasti to $4.25 from $2.75.

“This increase is driven largely by our recent de-risking of Acasti’s potential success in its clinical trials for its drug candidate, CaPre™. By marginally lowering our discount rate to 30% from 35% in our discounted cash flow model, our Acasti share valuation increased to $4.50 from $2.75. Furthermore, strong global demand for krill oil is expected to generate increased sales for Neptune’s nutraceutical business which has resulted in a higher valuation for that business as well.”

About Catalyst Equity Research

Catalyst was founded in 2003 and is located in Toronto. Catalyst is the only major independent equity research company in Canada specializing exclusively in the financial services sector. Its product is designed to identify investment opportunities, risks and strategic alternatives for both investors and corporations.

Robin Cornwell is the founder and principal shareholder of Catalyst. He is a veteran of the world of analyzing financial service companies in Canada having been involved in both the research and corporate finance aspects of the investment business for almost 30 years.

As a financial service analyst, he has researched chartered banks, trust companies, mutual fund companies, life insurance companies and investment counselors in Canada. He has acted in the capacity of Director of Research on three occasions and Director of Capital Markets on two occasions.

In his corporate finance activities, he was instrumental in many IPO’s including Great-West Lifeco, London Life and Newcourt Credit and acted in various advisory capacities for major companies including Power Financial, AGF Management and HSBC Canada.

He began his career with Dominion Securities, Harris & Partners Limited in 1972 and has held senior positions with McCarthy Securities Limited, Gordon Capital Corporation, C.M.Oliver Inc., and Laurentian Bank Securities Inc.

To view the Catalyst update on Neptune, please click here

To view the Catalyst update on Acasti, please click here