viewEnWave Corp

Enwave Corp receives 'outperform' rating from investment bank Raymond James, which starts coverage

Analyst Steve Hansen has put a C$2.50 share target - two cents above consensus - on the stock

EnWave Corp -
The group's tech dehydrates organic materials and also has pharmaceutical uses

Enwave Corporation (CVE:ENW) (OTCMKTS:NWVXF), the dehydration-focused tech firm, has received an 'outperform' rating from investment bank Raymond James, which has started covering the stock, according to The Globe and Mail. 

Analyst Steve Hansen has put a C$2.50 share target (two cents above the consensus) on the stock, seeing the firm as "poised to demonstrate very robust revenue/EBITDA [earnings before interest, taxes, depreciation and amortization] growth throughout our forecast horizon". 

The share target reportedly represents a 72% return from Friday's closing share price. 

WATCH: Full interview: Enwave Corporation announces technology and development deal with GEA Group

The Globe reported that analyst Hansen had written: "While EnWave shares have historically traded in tandem with the firm's reported revenue progression (TTM), we note this relationship has significantly broken down in recent months -- a divergence that, we believe, presents an attractive entry point opportunity given our financial outlook.

"While difficult to isolate, we attribute the bulk of EnWave's recent share price decline to the swift deterioration in outlook for the Canadian cannabis industry -- one where EnWave has admittedly increased revenue exposure over the past two years.

"However, as our revenue projections suggest, we continue to see outsized revenue growth going forward, primarily driven by the firm's NutraDried division."

Commercial license deal

Last month, Enwave revealed it had inked a royalty-bearing commercial license agreement with a Colombian snack maker.

The firm said Pacifico Snacks SAS will use the company’s flagship Radiant Energy Vacuum (REV) technology to produce dried-fruit snacks for the North American grocery market.

Under the terms of the license, Pacifico Snacks purchased a 10-kilowatt commercial REV machine to initiate commercial production. The REV machine/technology precisely dehydrates organic materials and has pharmaceutical uses as well.

The license was the first signed by EnWave in Colombia and the 38th worldwide, further proving the value proposition of the REV technology as a tool to create innovative, premium food applications.

EnWave shares nudged up 0.68% in Toronto to C$1.47 each.

Contact the author at [email protected]

Quick facts: EnWave Corp

Price: 1.24 CAD

Market: TSX-V
Market Cap: $138.15 m

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Full interview: Enwave Corporation announces technology and development deal...

Enwave Corporation (CVE: ENW) President and CEO Brent Charleton joined Steve Darling from Proactive Vancouver with news the company has signed a deal with a pharmaceutical company GEA Group  Charleton explains how this deal will work and also some development of the design and...

on 01/24/2020

2 min read