EnWave Corp in Sixth Gear With Significant Upside Potential
EnWave Corporation (TSXV:ENW – $1.07 CAD & OTC:NWVCF – $0.79 USD & Frankfurt:E4U – €0.73) offers industrial-scale dehydration technology for commercial applications in the food and pharmaceutical spaces. The Company’s Radiant Energy Vacuum (“REV”) platforms are becoming the new global dehydration standard, as they are faster and cheaper than freeze drying, and have better end product quality than both air drying and spray drying.
For the first quarter of fiscal year 2017, ended December 31, 2016, EnWave reported consolidated revenues of $3.46 million, compared to $2.60 million in the same period last year, a 33% increase.
These solid results can be attributed to increased machine sales and royalties. NutraDried sales were flat as the subsidiary was still impacted by last year’s reorganization. Stronger results are expected in the current quarter.
The Company is clearly in sixth gear and making progress on all fronts. We expect more commercial license deals in the near future, and as a result a continued improvement of the Company’s financials.
The commercialization of both powderREV and freezeREV technology platforms continued to progress during the first quarter, with EnWave advancing the design and manufacture of scaled-up versions of each platform for Sutro Biopharma and Merck. Installation and start-up of these machines is planned for 2017. If the installation of the powderREV and freezeREV platforms in the pharmaceutical sector yields superior performance to incumbent dehydration technologies, it will solidify EnWave’s value proposition with potential new partners in the pharmaceutical industry.
EnWave has started the year where it left off the previous one: with strong revenue growth. In addition, the Company is executing as planned with more TELOAs and royalty bearing commercial agreements.
We reiterate our buy recommendation for EnWave Corp. with a price target of $3.59, which is 235% above today’s stock price.
|Download the first quarter 2017 EnWave Corp. Company Report.|
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