Diamond Equity Research Initiates Coverage on AquaBounty Technologies Inc. (NASDAQ: AQB) with a Valuation of $4.25 Per Share
July 16 2018 - 9:30AM
via NetworkWire – Diamond Equity Research, a leading equity
research firm with a focus on small capitalization public companies
has initiated coverage of AquaBounty Technologies Inc.
(NASDAQ:AQB). The in-depth 25-page initiation report includes
detailed information on the AquaBounty business model, services,
industry, valuation, management and risks.
The full research report is available here. Highlights from the
report include:
Large Market Opportunity
The aquaculture industry has grown rapidly in recent years due
to increasing demand for seafood driven by population growth and
increasing per capita consumption, reflecting rising disposable
incomes in developing countries, improved distribution, and an
increasing preference for healthier food choices. The global
aquaculture market is expected to reach $226.2 billion in 2022 from
$169.9 billion in 2017, growing at a compound average growth rate
(CAGR) of 5.9 percent, according to a report on global aquaculture
by BCC Research. The market for salmon is expected to grow to $19.8
billion in 2022 from $14.2 billion in 2017, at a CAGR of 6.9
percent. Additionally, the genetically modified (GM) food industry
is projected to grow at a CAGR of 3.2 percent by the end of 2021
due to increasing acceptance of GM food on a global basis,
according to Research Nester.
As a biotech aquaculture company, AquaBounty specializes in
genetically modified salmon to enhance growth of the fish and to
reduce pollution associated with salmon breeding and harvesting.
The company currently focuses on AquAdvantage® Salmon farming under
controlled conditions, as an alternative to traditional commercial
harvesting of wild species of aquatic organisms. AquaBounty’s
exclusive research and business model provides it with a
distinctive advantage in the aquaculture and genetically modified
food industries.
Unique Technology
AquaBounty’s land-based farming of AquAdvantage® Salmon, the
first genetically modified animal approved for human consumption,
is an effective method of producing larger quantities of salmon
outside coastal zones, while complying with environmental
regulations. Compared to traditional aquaculture, the company uses
only 75 percent of feed to farm salmon, reducing operating costs.
AquAdvantage® Salmon grows faster, becoming ready for sale in
almost half the time, thus supporting more production in less time.
AquAdvantage® Salmon could reduce the carbon footprint by 25 times,
compared to traditional salmon, providing a key sustainability
advantage.
Attractive Valuation
It is challenging to value AquaBounty using a single method of
traditional valuations. We believe it cannot be compared directly
with other biotechnology companies because it specializes in
producing its proprietary AquAdvantage® Salmon. We have therefore
valued it using a blended discounted cash flow analysis and
technology value analysis, with a mix of similar biotechnology and
aquaculture companies. Our combined valuation analysis indicates
that AquaBounty’s shares are significantly undervalued. Based on an
average of the two methods, we computed a valuation of $4.25 per
share, indicating substantial upside from the current price.
About AquaBounty Technologies Inc.
AquaBounty Technologies focuses on the enhancement and
improvement of the productivity in commercial aquaculture. It uses
genetic manipulation and other molecular biologic techniques to
improve the quality and yield of fish stocks. The company was
founded in 1991 and is headquartered in Maynard, Massachusetts.
For more information, visit https://aquabounty.gcs-web.com/
About Diamond Equity Research
Diamond Equity Research provides institutional, quality research
to emerging growth companies that are undercovered and undervalued.
Diamond Equity Research is an approved sell-side provider on
premiere institutional investor platforms including Factset,
Morningstar, and Thomson One. The founder, Hunter Diamond, CFA,
brings extensive experience working as a research analyst and
investment banker focused on emerging growth companies. Hunter
Diamond, CFA holds his Bachelor of Science and Master of Business
Administration from Cornell University. The firm is headquartered
in midtown Manhattan.
For more information,
visit www.diamondequityresearch.com.
Disclosures:
Full disclosures pertaining to this report can be found in the
report at https://diamondequityresearch.com/disclosure.
AquaBounty Technologies Inc. has paid for this report as company
sponsored research, which is meant to subsidize the high cost of
creating the report and monitoring the security, however the views
in the report reflect that of Diamond Equity Research. Diamond
Equity Research LLC is being compensated by AquaBounty Technologies
Inc. for producing research materials regarding AquaBounty
Technologies Inc. and its securities. All payments are received
upfront and are billed for an annual or semi-annual research
engagement. As of 07/16/2018 the issuer had paid us $20,000 for our
services, with services commencing on 06/18/2018. Additional fees
may have accrued since then.
Contact:
Hunter Diamond, CFA Diamond Equity Research LLC
research@diamondequityresearch.com
Corporate Communications Contact:
NetworkNewsWire (NNW) New York, New York
www.NetworkNewsWire.com 212.418.1217 Office
Editor@NetworkNewsWire.com
AquaBounty Technologies (NASDAQ:AQB)
Historical Stock Chart
From Mar 2024 to Apr 2024
AquaBounty Technologies (NASDAQ:AQB)
Historical Stock Chart
From Apr 2023 to Apr 2024