Daniel Stewart upgraded its 2011 forecasts for Asterand (LON:ATD) following last week’s major contract win.
On Friday, the AIM quoted human tissue supplier announced a five year contract worth up to US$24.3 million with the US National Cancer Institute (NCI) to supply clinically annotated human biospecimens.
The base award is valued at US$5.4 million over 17 months with provisions for renewal at the NCI's option.
According to DS&C, the contract demonstrates Asterand’s success at expanding its presence in the public sector.
As a result the 2011 sales forecast for the company has been upped from £15.1 million to £17.2 million.
The broker also expects the deal to push Asterand back into profitability, foreseeing pre-tax profits of £0.9 million compared to previous projections of no profit and earnings per share of 0.5 pence per share.
Panmure Gordon has initiated coverage of e-Therapeutics (LON:ETX), whose technology platform it said could change how the pharmaceutical company conducts drug development.
The e-Therapeutics platform can be applied both to discovering new effective and safe medicines, and evaluating the efficacy and safety of specific molecules.
The broker issued a buy recommendation for the stock, setting the price target at 80 pence compared to the current 32 pence.
The price target was based on what the broker said were conservative assumptions on Clostriban use in the US and Europe and Dexanabiol in Europe alone. The net present value (NPV) for these prospects was estimated at 45 pence and 35 pence respectively.
Elsewhere in the oil and gas sector, Evolution Securities oil expert David Farrell expects Rockhopper Exploration (LON:RKH) to carry out a rights issue sooner rather than later.
The analyst noted a newspaper report over the weekend, which claimed a US$150 - US$200 million rights issue is being planned by the AIM-listed explorer.
The report in The Sunday Times claimed that Rockhopper will conduct the fundraising in the next six weeks.
Farrell emphasised that Rockhopper is up over 50% in the past month, and that results from Desire Petroleum’s (LON:DES) nearby Rachel well are due in early November
“We would expect a rights issue sooner rather than later.”
The recent sell-off in Nighthawk Energy (LON:HAWK, OTCQX:NHEGY) shares looks like investor capitulation and it represents a buying opportunity, according to Daniel Stewart analyst Richard Nolan.
Last week Nighthawk shares fell around 25% after the company’s founder and managing director David Bramhill retired from the board with immediate effect. The company’s commercial director Tim Heeley has stepped up to take the position.
“In our opinion this looks more like investor capitulation”, Nolan said.
The broker noted the company’s prospects at the Jolly Ranch project, where reports from Stumberger and Gaffney Cline are due shortly.
“Nighthawk’s assets support a much higher price and a 25% sell off is unwarranted ... The reserve report is a clear value catalyst coming up in the next few months”.