The Globe and Mail reports in its Thursday edition that Lumenpulse ($15.22) had a winning initial
public offering in April. The Globe's David Milstead writes in the Vox column that the stock, however, has fallen precipitously since late July, thanks to a significant
sales miss in its most recent
quarter and an ill-timed insider stock sale.
Lumenpulse bulls see an opportunity. Buy-side analysts suggest a 12-month target
price in the high $20s. The Globe notes that even at today's
depressed prices, Lumenpulse
stock is trading at a rich valuation,
with a forward price-to-earnings
ratio of 77. That suggests Lumenpulse will have to
dazzle over many years to reward
its shareholders.
By specializing in LEDs, Lumenpulse is
part of the future of lighting. Analysts believe the LED
market can grow at a rate of 30
per cent or more for the next several
years.
Canaccord Genuity analyst Jonathan
Dorsheimer says the supply chain
issues that contributed to earlier
poor results have been resolved. The analysts says investors have been
"throwing the baby out with the
bathwater." He has a $29 target
price. The Globe says Lumenpulse's near
term may brighten rather quickly, but watch your step beyond that.
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