Analyst coverage of ADL Bionatur Solutions initiated by Checkpoint with a target price of EUR 3.20 per share
DGAP-News: ADL Bionatur Solutions / Key word(s): Research Update
ANALYST COVERAGE OF ADL BIONATUR SOLUTIONS INITIATED BY CHECKPOINT WITH A TARGET PRICE OF EUR 3.20 PER SHARE
- Potential 12-month upside of 51% relative to current share price of EUR 2.12
- Estimated enterprise value of EUR 160 million compared to current EV of EUR 121 million
León, Spain, 12 February 2019 - ADL Bionatur Solutions (MAB: ADL), a company specialized in research and development of health products, services and industrial fermentation production, today announced that Checkpoint, a Madrid-based specialist in corporate finance for emerging technology companies, has initiated coverage of ADL.
Checkpoint estimates ADL's enterprise value (EV) at EUR 160 million on the back of a sum of the parts valuation, relative to the current EV of EUR 121 million. This represents a target price of EUR 3.20 per share (using a 13% equity discount rate), providing an upside of 51% relative to the closing price of EUR 2.12 on the Spanish Alternative Market (MAB) on 11 February 2019.
Checkpoint notes that ADL combines an accredited expertise in development and scale-up processes, with probably the lowest fermentation costs in Europe. Therefore, Checkpoint expects ADLs continued growth following the 65 % sales increase in 2018. ADL's long-term contracts with quality clients and stable cost base, provide good visibility for future earnings and led to Checkpoint's forecast of 37 % sales CAGR over the next 5 years.
The CMO division is, according to Checkpoint, the main driver for revenue growth due to its newly built capacity and strong competitive advantages in terms of costs and its qualified scientific team. Additional capacity extension is expected and the growing scale will enhance its relative competitive advantages. Furthermore, ADL continues to develop its proprietary products and technology platforms within the animal health division and the antibiotics division, which includes APIs, animal vaccines and probiotics.
Not included in the evaluation are ADL's proprietary products for human microbiota and the potential increase in revenues derived from the fermenters' capacity optimization.
The complete Checkpoint report is available at https://adlbionatur.com/wp-content/uploads/2019/02/ADLBionatur-Initiation-of-Coverage-11-Feb-2019-_-CheckPoint-1.pdf
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12.02.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.