News updates from both DeepVerge and Microsaic have been released this morning. While providing a trading update for its traditionally quiet first quarter, in which Q1 2022 produced record unaudited sales up 84% to £2.38m.
DeepVerge also confirmed one of its divisions had signed a Manufacturing Services Framework Agreement (‘MSFA’) with Microsaic with an initial contract worth £400,000, while also noting that it is presently seeing post-COVID market and sales activity intensify across all its international markets.
Significantly, the Group’s Chief Executive Officer, Gerard Brandon, went on to note that “Growth remains on track to achieve triple-digit percentage revenue growth year-on-year, similar to the last 3 and a half years”.
Recognising the scale and international nature of the opportunities now being presented to DeepVerge, through Modern Water’s unrivalled pathogen testing equipment plus the surging demand presently being received for Skin Trust Club’s home test kits, both of which are expected to be bolstered by further significant news releases in coming months, TPI retains its forecasts and ambitious financial model for DeepVerge.
A DCF-based valuation for the shares, which presently trade on a multiple of around 6x 2022E EBITDA, derives a price target of 94.7p. At this time, TPI does not publish a forecast or price target for Microsaic.
(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.)
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