Haywood analyst Pardeep Sangha says next-generation anti-counterfeiting firm Nanotech Security (TSXV:NTS) is undervalued. <\/p>\n
In a research report to clients Monday, Sangha initiated coverage of Nanotech with a Buy rating and a one-year price target of $2.00, implying a return of 62.6 per cent at the time of publication, though the analyst categorizes the overall risk rating on the stock as very high. <\/p>\n
Sangha says the opportunity for Nanotech, whose KolourOptik technology produces rich hologram-like images that are extremely difficult to copy, is immense. <\/p>\n
Nanotech develops next-generation anti-counterfeiting products, initially targeting the banknote industry, explains the analyst. Counterfeiting is a US$650B per year problem across numerous industries including banknotes, secure documents, ticketing, commercial branding, and pharmaceuticals. We believe Nanotech is at a growth inflection point as it transitions from research to commercialization stage with several large growth initiatives. <\/p>\n
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Sangha notes that Nanotech recently announced a five-year $30-million development contract and expects to ship its Optical Thin Film to a large Asian banknote issuing authority later this year. He thinks this points to one conclusion. <\/p>\n
We believe KolourOptik has the potential to disrupt the banknote industry, he says. <\/p>\n
Sangha thinks Nanotech Security will generate EBITDA of zero on revenue of $10.5-million in fiscal 2017. He expects these numbers will improve to EBITDA of $4.6-million on a topline of $21.5-million the following year and then to EBITDA of $14.9-million on revenue of $41.0-million in fiscal 2018. <\/p>\n
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Nanotech Security is undervalued, says Haywood - Cantech Letter<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Haywood analyst Pardeep Sangha says next-generation anti-counterfeiting firm Nanotech Security (TSXV:NTS) is undervalued. In a research report to clients Monday, Sangha initiated coverage of Nanotech with a Buy rating and a one-year price target of $2.00, implying a return of 62.6 per cent at the time of publication, though the analyst categorizes the overall risk rating on the stock as very high. Continue reading