Vancouver, British Columbia--(Newsfile Corp. - May 9, 2013) - Investment firm Canaccord Genuity has updated its coverage on EcoSynthetix Inc (TSX: ECO). Analyst Sara Elford reiterated her buy recommendation and 12 month target price of $8.00, a premium of 222% over the $3.61 price the day the report was issued.
InvestmentPitch.com has produced a "video news alert" about EcoSynthetix based on this research report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "EcoSynthetix" in the search box.
If you cannot view the video above, please visit:
http://www.investmentpitch.com/video/0_9ihv8hpw/Canaccord-Genuity-Updates-Coverage-on-EcoSynthetix-TSX-ECO
EcoSynthetix is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products, and can be utilized as a complete replacement for petroleum based emulsion polymers.
The company's EcoSphere biolatex binder products are created using starches derived from annually renewable crop resources, such as corn, potatoes and tapioca. EcoSphere is manufactured via a patented process into a powder, which retains equal or superior performance characteristics as the petroleum-based binders it replaces. It is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry.
Other products include family of smart waterborne pressure sensitive adhesives.
Net sales grew 54% to $6.1 million for the three months ended March 31, 2013 compared to the three months ended March 31, 2012.
"We are growing sales both within our existing customer base and through new customer wins, including three new paper and paperboard customers this year," stated John van Leeuwen, CEO. "The cost and performance benefits our bio-based materials bring as an alternative to petroleum-based binders are just as relevant to the building products and adhesive markets as the paper and paperboard market. Our teams are hard at work on creating new and innovative applications of EcoSphere and EcoStix that will open new markets and revenue opportunities."
Analyst Sara Elford stated, "This should be an exceptional business once volumes build in earnest, but a lack of visibility means investors are not yet paying for this potential, in our view. Our belief is that they will very quickly once meaningful growth is evident."
The shares are trading at $3.90, well below the $8.00 target price, and with 55.3 million shares outstanding, the company is capitalized at $216 million. We should also mention that as at March 31, 2013, the company is sitting on approximately $90 million in cash, or more than $1.60 per share.
For more information, please visit the company's website www.ecosynthetix.com or contact John van Leeuwen, CEO, at 289-288-5010 or email jvanleeuwen@ecosynthetix.com.
The company's investor relations is handled by Ross Marshall of TMX Equicom. He can be reached at 416-815-0700 (Ext.238) or by email at rmarshall@tmxequicom.com.
For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.
About InvestmentPitch
InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing three minute videos based on news releases and research reports.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan@investmentpitch.com
