Analyst Sees Neptune As Strong Buy; Increases Price Target to $9.25

Shares of Neptune Technologies & Bioressources Inc. (NASDAQ.NEPT) (TSX.NTB) traded as high as $4.88 on Wednesday but sold off with the overall markets at the end of the day following a published research report update by Robin Cornwell of Catalyst Research. In the note, Cornwell increased his 12 month price target to $9.25 from $8.75...

Shares of Neptune Technologies & Bioressources Inc. (NASDAQ.NEPT) (TSX.NTB) traded as high as $4.88 on Wednesday but sold off with the overall markets at the end of the day following a published research report update by Robin Cornwell of Catalyst Research.

In the note, Cornwell increased his 12 month price target to $9.25 from $8.75.  After recent fundamental developments announced by the company, the research firm revised their fiscal 2013 and 2014 forecasts and introduced new fiscal 2015 projections.

• Solid Q1/13 performance exceeding EBITDA expectations
  
  
• Higher gross operating margin of 59% versus 54% last quarter
  
  
• Nutraceutical EBITDA was $1.3 million, up 69% Year over Year
  
  
• Confirmed new orders for Krill oil amounting to US$25 million for calendar year 2013.
  
  
• Looking out 6 to 12 months, investors will no doubt continue to focus on Acasti's (TSXV-APO) clinical trial results for its drug candidate CaPre(TM).
  
  
• Neptune is unique for a bio/pharma technology company in that the cash flow from the nutraceutical operation is able to cover a substantial portion of the research and development costs of the subsidiary companies.
  
  
• Neptune is exceptionally positioned to capture the growing global awareness of the benefits of Krill oil over fish oils.

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