EnWave’s Continued Strong Growth Justifies Another Price Target Increase

EnWave Corporation (TSXV:ENW – $1.27 CAD & OTC:NWVCF – $0.94 USD) 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.

EnWave achieved a positive net income in its third quarter ended June 30, 2016. The second consecutive quarter of positive earnings for the Company! EnWave generated net income from continuing operations of $113,000 compared with a loss of $1,562,000 in the third quarter of last year.

The trend of significant year-over-year revenue growth also continued. For the three months ended June 30, 2016 revenues reached $5,224,000, compared with revenues of $1,408,000 in the comparable period in 2015, an increase of $3,816,000 or 271%.

EnWave’s business continues to accelerate. Judging by the announcements that have already been made in the Company’s current fourth quarter, it’s clear that continued commercial success can be expected.

In recent weeks EnWave signed a commercial, royalty-bearing license with Perdue Farms Inc., one of the largest organic chicken producers in the United States. And it advanced its yogurt snack development with Ultima Foods, a major Canadian yogurt and fresh dairy products manufacturer.

Also, the Company signed three Technology Evaluation and License Option Agreements. It closed a deal with a leading Australasian manufacturer of fresh and processed meat products, with a major European food processor, and with a Mexican food processor.

We reiterate our buy recommendation for EnWave Corp. with a price target of $3.67, which is 188% above today’s stock price.

Download the third quarter 2016 EnWave Corp. Company Report.

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