Nanotech Security has 57.5% upside, Haywood says – Cantech Letter – Cantech Letter

With its third quarter results due on Thursday, Haywood analyst Pardeep Sangha thinks Nanotech Security (TSXV:NTS) will deliver its first-ever quarter of positive EBITDA.

On August 3, after market close, Nanotech will report its Q3, 2017 results. Sangha expects the company will post EBITDA of $100,000 on revenue of $2.8-million, a topline that would be up 145 per cent over the $1.2-million in revenue the company generated in the same period last year. Sanghas targets are in-line with the street consensus of $300,000 in EBITDA on revenue of $2.7-million.

Sangha says he thinks this will be a historic quarter for Nanotech.

We are expecting Nanotech to achieve its first quarter of positive EBITDA in Q3FY17 due to the increase in revenue and higher gross margins, the analyst says. He adds he will be on the companys conference call, listening for whether or not management reiterates its guidance to double revenue in fiscal 2017, on the progress of a $30-million development contract, and for sales pipeline activity, including a tax stamp opportunity in India.

In a research update to clients today, Sangha maintained his Buy rating and one-year price target of $2.00 on Nanotech Security, implying a return of 57.5 per cent at the time of publication.

Sangha thinks Nanotech will generate Adjusted EBITDA of negative $200,000 on revenue of $10.0-million in fiscal 2017. He expects those numbers will improve to EBITDA of positive $4.6-million on a topline of $21.5-million the following year.

Read the rest here:

Nanotech Security has 57.5% upside, Haywood says - Cantech Letter - Cantech Letter