logo-loader
viewPressure BioSciences, Inc.

Pressure BioSciences gets high-upside price target from Zacks after scoring big Ultra Shear Technology order

The firm tagged the company with a $4.44 price target — suggesting a 73% upside over Thursday’s closing price

Cannabis plants and oil on burlap with a CBD molecule overlay
In January, the company received an order for six of its CBD oil-processing UST machines, which analyst Elizabeth Senko valued in the $1.1-1.2 million range

Pressure BioSciences Inc (OTCMKTS:PBIO) got a jolt of analyst optimism Friday as Zacks Small-Cap Research released a bullish note praising the firm’s recent sales.

The firm tagged the company with a $4.44 price target — suggesting a 73% upside over Thursday’s closing price — based on demands for the company’s Ultra Shear Technology (UST).

Shares ended Thursday at $2.56.

In January, the company received an order for six of its CBD oil-processing UST machines, which analyst Elizabeth Senko valued in the $1.1-1.2 million range.

READ: Pressure BioSciences unveils bench-top CBD oil-processing device for launch in 3Q 2020

“This order is notable for two reasons,” Senko wrote. “The contract covers half of PBIO’s planned UST sales for 2020, and the order comes from a single client. In addition, in our view, the order demonstrates how the lack of sales/marketing bandwidth may be holding back PBIO s overall sales growth. In late 2019, PBIO brought on someone to focus on UST sales, and clearly it appears to be paying off.”

In addition, the Massachusetts-based company unveiled a benchtop version of its UST machine. That’s a good sign, as Zacks estimates the CBD market will continue to grow. 

“The CBD industry is in an explosive growth and land-grab mode with many companies spending to improve bioavailability, increase the quality of products, and scale production,” Zacks wrote. “We believe the market for these machines is quite large and have modeled for solid growth over the next few years. Our revenue model assumes $2.5 million in UST sales for 2020 (12 units) growing to $7 million by 2022 (35 units).”

Zacks did note that the CBD window could close within a few years as the industry begins to consolidate, however, the firm sees opportunity outside CBD, “particularly in food, pharmaceuticals/nutraceuticals and cosmetics.”

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: Pressure BioSciences, Inc.

Price: 2.36 USD

OTCMKTS:PBIO
Market: OTCQB
Market Cap: $6.54 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Pressure BioSciences, Inc. named herein, including the promotion by the Company of Pressure BioSciences, Inc. in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Zanaga Iron Ore's Andrew Trahar updates on floating port facility and early...

Zanaga Iron Ore Company Limited's (LON:ZIOC) Andrew Trahar speaks to Proactive London following the news it's completed a concept study to assess the viability of a floating dewatering, storage and offloading port facility at its project in the Republic of Congo. He says the study indicates the...

2 days, 6 hours ago

2 min read