Imaflex (Imaflex Stock Quote, Chart, News TSXV:IFX) has wrapped up another solid quarter, according to Beacon Securities analyst Ahmad Shaath, who reviewed the numbers in an update to clients on Tuesday. Montreal-based Imaflex specializes in polyethylene films for the packaging industry and agricultural mulch films in the US and Canada, with manufacturing operations in Quebec and North Carolina. The company reported its second quarter 2020 results on Tuesday, with revenue down 2.2 per cent to $20.8 million and adjusted EBITDA on a constant currency basis up 63.4 per cent to $2.7 million. In the quarterly comments, Imaflex management said the impact of COVID-19 on its business and financial situation is still unclear, with potential outbreaks at one of its plants, deferrals in purchases, payment issues with customers or supply and distribution delays are all potentially in play, although the company said it has the solid foundation to adapt to any challenges. \u201cOperationally, we continue to do business in a dynamic pricing environment. Resin prices have firmed up in recent months, coming off a market bottom reached earlier this year. As we have no long term contracts with our customers, we are able to adjust our pricing accordingly. Though, there is usually a 30-day lag between resin price increases and when we are able to pass this along to our customers, we do not expect it to have a material impact on our business in 2020,\u201d said president and CEO Joe Abbandonato in a press release. The quarterly results were better than expected, according to Shaath, who was calling for $20.3 million in revenue and $2.0 million in EBITDA compared to the resultant $20.8 million and $2.7 million, respectively. The analyst pointed to stronger sales volumes which were up 18 per cent year-over-year as a highlight, along with continued strong profitability. Shaath also spoke of Imaflex\u2019s new study on ADVASEAL\u2019s efficacy in controlling noxious, invasive weeds, with the company aiming to submit a new registration package with the US Environmental Protection Agency around the end of 2020. Shaath said Imaflex remains cautious on the timeline for EPA approval which could take up to a year. \u201cWe expect IFX to continue to deliver stronger volumes driven by continued strength in demand and added capacity. We note that the company had some key sales personnel grounded by COVID-19 lockdowns during the quarter. Their return should help, especially in selling high-value, higher-margin, converted products. Some headwinds will come from the increase in resin prices (30-day lag in passing costs through), although we do not expect major impact to margins,\u201d Shaath wrote. \u201cWe have not made any changes to our assumptions and continue to reflect no sales from both Shine N\u2019Ripe XL and ADVASEAL. Updates from ADVASEAL trials and the submission of EPA registration will be the key catalysts for the balance of FY20,\u201d he wrote. With the update, Shaath reiterated his \u201cBuy\u201d recommendation and $0.90 target price, which at press time represented a projected 23 per cent return. Imaflex\u2019s share price has been on the upswing in 2020, currently returning 12 per cent year-to-date.