Wednesday, 18 July 2012

Catalyst Equity Research Ups Strong Buy Target to $9.25 For Neptune

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

Robin Cornwell, founder of Catalyst Research has published an updated buy recommendation on Neptune Technologies.

Cornwell has increased his 12 month price target to $9.25 from $8.75. The reasons he outlines are as follows:
  • Solid Q1/13 performance exceeding EBITDA expectations.
  • Higher gross operating margin of 59% versus 54% last quarter.
  • Nutraceutical EBITDA was $1.3 million, up 69% Y/Y.
  • Confirmed new orders for Krill oil amounting to US$25 million for calendar year 2013.
  • Looking out 6 to 12 months, investors will no doubt continue to focus on Acasti’s (TSXV-APO) clinical trial results for its drug candidate CaPre™.
  • Neptune is unique for a bio/pharma technology company in that the cash flow from the nutraceutical operation is able to cover a substantial portion of the research and development costs of the subsidiary companies.
  • Neptune is exceptionally positioned to capture the growing global awareness of the benefits of Krill oil over fish oils.
To view the Catalyst Equity Research Company Update for Neptune, please click here