Canaccord Genuity Updates Buy Recommendation for EcoSynthetrix Inc (TSX:ECO) - Video Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, May 9, 2013 - Investment firm Canaccord Genuity has
updated its coverage on EcoSynthetix Inc (TSX:ECO). Analyst Sara Elford
reiterated her buy recommendation and 12 month target price of $8.00, a premium
of 222% over the $3.61 price the day the report was issued.
InvestmentPitch.com has produced a "video news alert" about EcoSynthetix based
on this research report. If this link is not enabled, please visit
www.InvestmentPitch.com and enter "EcoSynthetix" in the search box.
EcoSynthetix is a renewable chemicals company specializing in bio-based
products that can be used as inputs in industrial manufacturing for a wide range
of consumer products, and can be utilized as a complete replacement for
petroleum based emulsion polymers. The company's EcoSphere biolatex binder
products are created using starches derived from annually renewable crop
resources, such as corn, potatoes and tapioca.
EcoSphere is manufactured via a patented process into a powder, which retains
equal or superior performance characteristics as the petroleum-based binders it
replaces. It is used commercially by a number of the global top 20 manufacturers
in the coated paper and paperboard industry.
Other products include family of smart waterborne pressure sensitive adhesives.
Net sales grew 54% to $6.1 million for the three months ended March 31, 2013
compared to the three months ended March 31, 2012.
"We are growing sales both within our existing customer base and through new
customer wins, including three new paper and paperboard customers this year,"
stated John van Leeuwen, CEO. "The cost and performance benefits our bio-based
materials bring as an alternative to petroleum-based binders are just as
relevant to the building products and adhesive markets as the paper and
paperboard market. Our teams are hard at work on creating new and innovative
applications of EcoSphere and EcoStix that will open new markets and revenue
opportunities."
Analyst Sara Elford stated, "This should be an exceptional business once volumes
build in earnest, but a lack of visibility means investors are not yet paying
for this potential, in our view. Our belief is that they will very quickly once
meaningful growth is evident."
The shares are trading at $3.90, well below the $8.00 target price, and with
55.3 million shares outstanding, the company is capitalized at $216 million. We
should also mention that as at March 31, 2013, the company is sitting on
approximately $90 million in cash, or more than $1.60 per share.
For more information, please visit the company's website www.ecosynthetix.com or
contact John van Leeuwen, CEO, at 289-288-5010 or email
jvanleeuwen(at)ecosynthetix.com.
The company's investor relations is handled by Ross Marshall of TMX Equicom. He
can be reached at 416-815-0700 (Ext.238) or by email at
rmarshall(at)tmxequicom.com.
For more information about Canaccord Genuity or to obtain a copy of their
research report, contact your nearest Canaccord Genuity office. Their branches
are listed on their website at www.canaccord.com.
About InvestmentPitch
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Source: InvestmentPitch via Thomson Reuters ONE
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Datum: 09.05.2013 - 17:18 Uhr
Sprache: Deutsch
News-ID 258376
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