Industrial Alliance Securities analyst Neil Linsdell is staying bullish on EnWave (EnWave Stock Quote, Chart, News TSXV:ENW) ahead of the company\u2019s third quarter earnings. In an update to clients Tuesday, Linsdell reiterated his \u201cBuy\u201d rating and $2.00 target for EnWave, arguing that the company looks to be weathering the COVID storm and should be poised for growth. Vancouver-based EnWave is an applied technology company that licenses, builds and installs commercial-scale dehydration platforms for companies in the food, pharmaceutical and cannabis sectors. The company has developed the Radiant Energy Vacuum (REV) for dehydrating organic materials and has a subsidiary, NutraDried Food, that makes and sells dairy-based snacks including the Moon Cheese brand through the United States. EnWave, which is to report its fiscal third quarter to June 30 on Thursday after market close, is expected to see a drop in revenue, according to Linsdell, attributed to lockdowns and travel restrictions which have hit the company\u2019s ability to meet with potential clients, carry out demonstrations, close deals and commission REV equipment. At the same time, Linsdell thinks EnWave will show growth in Moon Cheese sales via increased penetration through Costco and the roll-out into new retail, club, food service and convenience store channels. \u201cFQ3 results should continue to be impacted by travel restrictions and lockdowns, although we expect to see good traction with Moon Cheese snacks, but with slower growth than was anticipated before COVID-19. Although we expect certain issues to (slowly) rectify through the end of the year, growth projects will likely be deferred as customers adjust their own protocols and systems, and as retailers delay or re-evaluate new products as NutraDried has been putting a big focus on expanding its retail distribution channels,\u201d Linsdell wrote. \u201cWe expect growth to continue, although timelines will likely be pushed out. In the interim, we still regard the Company\u2019s product offerings as valuable to its customers and that a solid balance sheet (net cash $15 million) leaves EnWave in a strong position to weather these disruptions,\u201d he said. Linsdell said EnWave is continuing to sign and advance partnerships and he pointed out recent deals selling REV units to Orto Al Sole in the European Union, to Pick-One in Mexico and to existing partner Calbee in Japan. On the quarterly numbers, Linsdell is calling for $7.8 million in revenue, down 23 per cent year-over-year, and an adjusted EBITDA loss of $953,000. For the fiscal 2020 year, the analyst is now estimating revenue of $35.0 million (previously $40.0 million) and adjusted EBITDA of negative $3.7 million (previously positive $0.9 million). Linsdell\u2019s $2.00 target at press time represented a projected 12-month return of 112.8 per cent. EnWave last reported on May 29 when its Q2 revenue was $7.5 million compared to $8.8 million a year earlier and adjusted EBITDA was a loss of $1.5 million compared to a gain of $1.0 million in Q2 of 2019. Last month, EnWave announced it had obtained a Research License from Health Canada for its Vancouver facilities for conducting research and development for cannabis products. \u201cWith a pilot plant that is now approved for independent research and development for cannabis products, EnWave has the ability to expedite process development and data analytics for terpene and cannabinoid retention along with other critical properties of cannabis.\u00a0This strategy is designed to further demonstrate the significant value proposition of the Company\u2019s proprietary, vacuum-microwave drying technology,\u201d the company said in a press release.