Zachs Small-Cap Research has initiated coverage on Pressure BioSciences Inc (OTCMKTS:PBIO) with a price target of US$4.44 on the Massachusetts-based company.
Pressure BioSciences develops pressure-based platform technology solutions for the booming life sciences industry. Its key products are high pressure-based scientific instruments for drug design and development and the food science and CBD market.
During its second quarter, the firm saw strong consumables sales and serious momentum from the launch of its water-soluble CBD manufacturing system.
READ: Pressure BioSciences wins two more orders for its novel BaroShear K45 water-soluble CBD manufacturing system
In a research note, Zachs said that the firm was at a “tipping point,” with demand expected to accelerate starting in 2020.
“After a decade of marketing its original PCT sample preparation platform to academic opinion leaders and early research customers, the company recently launched two new proprietary technology platforms opening major new market opportunities,” Zachs analyst Elizabeth Senko wrote.
“In our view, the overall story is solid, and the combination of new platform products, new commercial applications, and customers position PBIO squarely to move its business to the next level.”
Zachs forecast revenue of US$12.1 million by 2022, with 66% coming from instrument sales and the balance from consumables and contract services.
The instrument manufacturer should reach operating profitability by 2022, according to Senko, as sales growth moves overhead costs from 140% of sales (in 2018) down to around 32%.
Pressure BioSciences recently won two more customers for its water-soluble CBD manufacturing system, the BaroShear K45, which applies high-pressure to create nano-scale emulsion mixtures that results in stable homogenized products called nanoemulsions.
Shares of Pressure BioSciences inched 0.8% higher on Friday afternoon to trade at US$2.67.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas