Mackie Research Capital analyst Nikhil Thadani says investors should move their focus from Eguana Technologies (TSXV:EGT) “immaterial” Q3 results and instead focus on the company’s pipeline.
Yesterday, Eguana reported its third quarter, 2016 results. The company reported revenue of $284,980, up 62 per cent from the $176,272 topline the company posted in its second quarter.
“We remain on track with our European recovery as we transition to field trials in Germany,” said CEO Justin Holland. “Our development team continues to execute with a top global automotive company, creating a product we are confident will set a new standard for energy storage.”
Thadani says Eguana’s third quarter did not contain metrics that will be important to its future. Instead, he notes that the company’s German automotive design wins appear to be progressing and anticipates that the company’s efforts in Hawaii will soon bear fruit.
“We expect Hawaii deployment revenue ramp to pick up in a few weeks,” says the analyst. “We expect deployments to commence around Sept/Oct time-frame i.e. in Q1 (Dec) F2017, as capacity limits for Customer Grid Supply are attained in Oahu, which should be a driver for the Customer Self Supply program, which necessitates installation of storage systems. Net Zero Energy homes study commissioning in Fontana, CA by non-profit EPRI could aid California growth, where the goal is that all new homes be net-zero or the equivalent by 2020; EGT and LG Chem already have a foot print, according to the NY Times.”
In a research update to clients today, Thadani maintained his “Speculative Buy” rating and one-year price target of $0.70 on Eguana Technologies, implying a return of 112 per cent at the time of publication.
