Pyrogenesis a Little Risky, Still a Speculative Buy says Versant’s Fiore

Versant analyst Massimo Fiore is bullish on the prospects for Pyrogenesis, but he sees a little more risk in the stock, short term. Fiore says the “lumpiness” of the company’s revenue caused by long sales cycles and the poor liquidity of its stock are particular concerns. In a research update to clients today, Fiore downgraded Pyrogenesis from “Buy” to “Speculative Buy” and lowered his twelve-month target price to $1.65.

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Founded in 1991, Pyrogenesis designs systems that convert municipal and industrial waste into gaseous fuel. The company has landed recent high profile contracts with the US Navy and the US Air Force, where its plasma waste-to-energy system has been in operation at the Florida base since late last year. Pyrogenisis merged with another publicly listed cleantech, Industrial Growth, last summer and went on to raise more than $7-million. But the newly formed company’s shares have been sliding since the merger, from a high of $1.90 last July, to nearly a third of that recently.

Fiore says that while the recent financing, which closed on March 29th, gave the company some breathing room, it also forced him to readjust his metrics because of the dilution that financing incurred. Nonetheless, Fiore believes Pyrogenesis “…holds best-in-class technology with a world class clientele…”

Shares of Pyrogenesis closed today even at $.62 cents.

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