The Globe and Mail reports in its Thursday, June 4, edition that Nanoxplore's ($1.51) third quarter results matched the expectations of Paradigm Capital analyst J. Marvin Wolff. The Globe's David Leeder writes in the Eye On Equities column that accordingly, Mr. Wolff raised his share target to $4.85 from $3.85. Mr. Wolff is sticking with his "buy" call. Analysts on average target the shares at $3.07.
Mr. Wolff says in a note: "With the graphene plant set to start commercial production soon and supply contracts under negotiation, we are maintaining our target EV/EBITDA multiple of 17.5 times using 2023 (a full year of 10,000-tpa graphene production), EBITDA of $48.5-million and a 7.5-per-cent discount rate (10 per cent prior), reflecting management's strong execution ability and the retirement of production risk. We are increasing target price as the company nears commercial production. While the former Sigma operations will have short-term negative performance, we concentrate on the longer-term highly valued graphene production and value of the graphene production patents."
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