Epicore BioNetworks is a buy, says Cantor Fitzgerald Canada

Epicore BioNetworks (Epicore BioNetworks Stock Quote, Chart, News: TSXV:EBN) has a credible plan to gain market share in a potentially massive market; the supply of sustainable sources of higher value proteins, says Cantor Fitzgerald Canada analyst Scott Curtis.

In a research report to clients yesterday, Curtis initiated coverage of Epicore BioNetworks with a “Buy” rating and one year target of $1.65, implying a return of 94% at the time of publication.

Founded in 1987, Epicore BioNetworks is a specialty feed and biological products supplier for the aquaculture industry. The company’s EPICIN branded biological aquaculture systems aim to create a cleaner and healthier growing environment in aquaculture hatcheries and ponds, in part by eliminating toxins such as ammonia and nitrates. Worldwide, the aquaculture industry is booming, accounting for nearly half of all current fishery production.

Curtis says this is a transition year for Epicore. He notes that the company has made recent key hires and plans to add a 6000 square foot plant extension by June of this year. He points out that the company is currently capacity constrained, but will be able to support annual sales of $20-million after its expansion is complete.

“Exiting 2015, EBN will be well positioned to gain market share with its expanded capacity and should recognize enhanced profitability from its operating leverage,” said Curtis.

The analyst says that with a Compound Annual Growth Rate of 20% over the past 15 years, Epicore has demonstrated an impressive ability to grow sales and drive shareholder returns. He notes that the company has also been profitable for 11 consecutive years.