Original research: Atmofizer Technologies Inc. - by Sphene Capital GmbH
Classification of Sphene Capital GmbH to Atmofizer Technologies Inc.
Company: Atmofizer Technologies Inc. ISIN: CA04952E1097
Reason for the study: Start of coverage Recommendation: Buy since: January 11th, 2022 Target price: CAD 5.00 Target price from: 36 months Last rating change: - Analyst: Peter Thilo Hasler, CEFA
More than just clean air
We are adding the shares of Atmofizer Technologies Inc., which are listed on the Canadian Securities Exchange and over the counter at the Frankfurt, Stuttgart and Munich stock exchanges, to our research coverage with a buy rating. With a price target of CAD 5.00, we see significant long-term price potential after the unsatisfactory performance since the IPO, which, however, depends to a considerable extent on the underlying sales and earnings assumptions. Our price target ( base case scenario) results from a long-term, three-stage discounted cash flow entity model. In a Monte Carlo analysis, we have used alternative sales and earnings scenarios as a basis and calculate equity values in a range between CAD 3.60 and 7.60 per share.
With the Atmofizer 500 for smaller commercial spaces and private use and, according to the company, the Atmofizer Pro for larger commercial spaces, which is about to be launched on the market, Atmofizer has developed two air cleaning devices which, according to the company, are suitable for removing ultra-fine particles (UFPs) such as atmospheric fine dust particles To capture and eliminate power plants, motor vehicles and aircraft, chimneys, forest fires, volcanic eruptions and dust storms as well as bacteria, viruses, spores and fungi from a size of 10 nanometers with a cleaning rate of 99.99%. These acquisition rates, which have not yet been observed in the industry, are made possible by the combined use of ultrasonic waves and UV-C light.
With predominantly variable expenses, in our opinion the company should achieve a strong scaling of the earnings situation in the coming years. By 2025e, the end of our detailed planning phase, we anticipate an increase in sales to USD 83.0 million and the operating result (EBIT) to USD 23.7 million in a base case scenario.
We evaluate the equity of Atmofizer Technologies Inc., which is listed on the Canadian Securities Exchange and with a secondary listing on the Frankfurt, Stuttgart and Munich stock exchanges on the basis of a three-stage discounted cash flow entity model and determine a price target of CAD 5.00. In a Monte Carlo analysis, we calculated equity values between CAD 3.60 and 7.60 per share (10% or 90% quantile).
You can download the full analysis here: https://www.more-ir.de/d/23248.pdf
Contact for queries Peter Thilo Hasler, CEFA +49 (89) 744 35 58 / +49 (176) 62 11 87 36 peter-thilo.hasler@sphene-capital.de
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