News updates from both DeepVerge and Microsaic have been released this morning. Modern Water, a division of DeepVerge, announced a total of £2.2m of new orders for its enhanced monitoring equipment, including a contribution from Microsaic mass spectrometer products for monitoring ‘forever chemicals’ and contaminants of emerging concern.
Following a recent software upgrade, second-generation real-time pandemic response units with fully integrated facilities for SARS-CoV-2 detection are being shipped to the UK, India and China in order to meet customer and partner obligations for delivery in this financial year. With over £9m finance available at the interim stage, DeepVerge remains well-resourced to fund not only its planned move into high volume production of its Microtox® PD range in both China and Ireland, but also expand processing capacity for its Skin Trust Club’s home test kits in response to surging demand while it progresses ongoing joint venture negotiations with China Resources.
Recognising the scale of the opportunities being presented and in expectation of a number of significant news releases prior to the year end, on 3 August 2021 TPI updated its forecasts and financial model for DeepVerge, resulting in an increased share price target of 94.7p (up from 84.8p that was previously).
(Please note that TPI’s valuation is based on financial modelling and there is no guarantee that such a valuation will ever be realised, therefore please do not base investment decisions on this valuation alone. Also please note that past performance is not a reliable indicator of future results.)
We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to DeepVerge plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.
The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient
Copyright © 2021 Turner Pope Investments (TPI) Limited, all rights reserved.
