UpgradeCiting a “clear uptick” in new machine orders over the past six weeks, Raymond James analyst Steve Hansen raised his target price for shares of Enwave Corp. , seeing “a pattern seemingly underpinned by improved customer confidence in the macro outlook, most notably in the food & snack related sectors.” “Following an extended period of reduced order flow (since COVID emerged), the cadence (and scale) of EnWave’s machine orders have turned demonstrably higher in recent weeks, evidenced by the 5 new orders announced since early November, including one medium 60 kW machine (NuWave Foods) and one large 100 kW machine(Patatas Fritas),” he said. “Broadly speaking, we view this recent acceleration in new orders as a reflection of improved customer confidence in the macro outlook, most notably with key food-related customers—a theme we expect to carry into 1H21.”
Mr. Hansen also pointed to a “rising opportunity in the recently dormant cannabis sector,” leading him to raise his target to $1.60 with $1.20 with an “outperform” rating. The current average is $1.55.
“While EnWave shares have surged 75 per cent since Oct. 1 2020, we continue to see further upside as machine order momentum carries (accelerates) into 1H21,” the analyst said. “While retail headwinds linger, we are also cautiously upbeat over NutraDried’s 2021 growth prospects, underpinned by new distribution channel wins (i.e. grocery, mass retail) and the commissioning of the segment’s new REVworx platform.”