Another Version of Comments Raymond James analyst Steve Hansen upgraded Enwave Corp. (ENW-X) to “outperform” from “market perform” following “standout” fiscal third quarter 2021 results.
Adjusted EBITDA “pushed back firmly into positive territory and offered clear evidence of the firm’s accelerating turnaround in both divisions,” Mr. Hansen commented in a note.
EnWave licenses, builds, and installs commercial-scale dehydration platforms for applications in the food, and cannabis and pharmaceutical sectors. Separately, the company manufactures and sells a dried cheese snack called Moon Cheese through its wholly-owned subsidiary NutraDried.
EnWave’s fiscal third quarter revenues of $7.4 million was up 22.6% from a year ago and beat the Street estimate of $6.1 million. The company also reported impressive sales and margins figures.
“Looking forward, management remains demonstrably constructive over its sales pipeline, drawing confidence from several factors including: 1) the firm’s new strategic partnership with Dole Worldwide Foods & Beverages, one aimed at developing innovative new fruit & veggie snack lines (acquired one 10 kW machine to start, with room for significant upside); 2) strong/accelerating interest from the US cannabis industry, largely thanks to the robust/quantifiable benefits associated with ENW’s TerpeneMax drying technology,” Mr. Hansen said.