Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in PBIO?
Pressure BioSciences Inc: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Zacks upbeat on Pressure BioSciences' growth potential; targets US$10 a share

The company has developed a "unique and superior pressure" cycling technology (PCT), says Zacks.
Zacks upbeat on Pressure BioSciences' growth potential; targets US$10 a share
INVESTMENT OVERVIEW: PBIO The Big Picture
Earlier this month, Pressure said it was moving firmly towards profitability as it unveiled record revenues for the third quarter

Pressure BioSciences Inc (OTC:PBIO) has received an upbeat write-up from Zacks smallcap research, which it reckons is more like a development stage biotech and targets US$10 each for the shares (current price: US$4.20).

The group operates in the "rather large, but underserved" research services market, says Zacks.

It has developed a "unique and superior pressure" cycling technology (PCT) to prepare biological laboratory samples.

The research group said sales had not been stellar so far, but this was "understandable".

PCT quite a new technology

"Pressure cycling technology is quite new to most customers in the sample preparation market, and the costs for PCT are also higher than those for most existing technologies. Therefore, rollout of the PCT platform will take time."

Earlier this month,  Pressure said it was moving firmly towards profitability as it unveiled record revenues for the third quarter.

It reckons this revenues growth will not only continue in the fourth quarter and beyond, but accelerate to a greater rate as new sales team begins to meet with existing and potential customers throughout the US.

Total revenue in the third quarter was up 21% to US$646,061 from US$535,334 in the same period last year, which was a new record for any quarter.

Products  and services revenue increased 21%  to US$603,726, a new quarterly record, while consumable sales increased 158% to US$84,594, again a new quarterly record.

Grant revenue increased 23% to US$42,335 in the quarter, versus 34,385 in the third quarter last year.

So far, and significantly, fourth quarter purchase orders and purchase indications (90% estimated probability of closing) through to early November have already exceeded products and services revenue for the full 2016 fourth quarter, Pressure also noted.

Poised to boost top and bottom line..?

In its note, Zacks said: "With a rapidly growing market worldwide, combined with its unique technology and broad range of product offering, the company is well positioned to boost its top line and bottom line in the coming years.

"According to our long term financial model, the company's products and services revenue will grow at a compound annual growth rate (CAGR) of 79% in the next four fiscal years from 2017 to 2020."

Pressure Biosciences will become profitable in fiscal 2019 with an EPS of $0.01, it adds.

Achieving the CE marking for the Barocycler 2320EXT in February was an important next step in the company' s commercialization plans for this powerful and enabling sample preparation instrument, highlights Zacks.

"The company recently signed agreements with several strong distribution partners in Europe, the SCIEX co-marketing agreement is entering its second year (SCIEX is a global provider of laboratory instrumentation to the life sciences area, with a large presence in Europe."

And now with a significantly expanded sales capabilities, as well as the newly established multinational co-marketing partner SCIEX, Zacks reckons revenue will grow significantly in the fourth quarter and beyond.

Our price target values the company at $11 million in market cap.

Valuation conservative..

"This valuation is still very conservative in our view. As long as the company can execute on its growth strategy correctly, we believe this goal is achievable. Patient investors will get rewarded."

Shares eased 1.18% to US$4.20 on Tuesday.

View full PBIO profile View Profile

Pressure BioSciences Inc Timeline

Related Articles

scientist looking through microscope
April 12 2018
Kumaraguru Raja sees “multiple catalysts” in the year ahead which could put a rocket under the share price
picture of addict
November 16 2017
To build the UK's first £1bn, self-sustainable biotech is the aim for chief executive Clive Dix
1528305384_Untitled-design-(3).jpg
June 07 2018
Ventripoint received key FDA approval to sell the device with the four-chamber heart analysis last month

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use