VERY NICE NEWS. Echelon Wealth Partners has placed Pioneering Technology Corp. (PTE-X) on its Top Picks list.
"Potential catalysts include additional contract/customer wins, improved financial results, and M&A activity. We continue to view PTE as an undervalued, underfollowed play on new safety requirements that should drive strong demand growth for the company’s cooking fire prevention products," the firm said.
Pioneering Technology Corp. designs and produces solutions for cooking fire prevention and energy reduction, and markets these products primarily to the multiresidential market and secondarily through retail channels.
The firm kept its "speculative buy" rating on the stock and its price target of $1.60. The consensus is $1.60.
"In March, 2017, the company completed the bulk of a $6.6-million bought deal private placement at $1.10/unit (the overallotment closed in April). The hold period on that financing expires on July 23rd, and we would view any related weakness as a buying opportunity. Echelon Wealth Partners led that the financing. Considering its impressive organic top line performance, strong EBITDA margins and operating cash flow, we do not expect PTE to continue being underfollowed for long," the firm said.
"In late May, the company reported Q217 revenue growth of 80 per cent year over year, beating our sales forecast by 9 per cent. For H117, Pioneering delivered top line growth of 79 per cent year over year, tracking well ahead of management’s reiterated guidance of 50 per cent, though we concede the year over year comparisons will be impacted by a strong H216. The company’s SmartBurner product has been the primary revenue driver, although the company is working to introduce additional offerings. In June, the company announced a definitive agreement with Innohome OY that contemplates the late summer launch of a Pioneering-branded product using Innohome’s heat sensor technology. This product will target the electric smooth top (also called glass/ceramic) market, which will complement the company’s rapidly building presence in the electric coil market."