Enteq Technologies PLC (AIM:NTQ) had its target price left unchanged at 40p by FinnCap after today's year-end trading update, but the broker is excited about Enteq's SABER product.
SABER is a novel drilling tool that offers an alternative to the traditional rotary steerable systems. The broker's analysts highlighted good progress is being made while commercialisation is on track and expected this year.
Net cash fell by US$400,000 to US£4.9mln, although this reflects ongoing development and investment, and should be sufficient enough to take SABER to the market.
The broker adds that SABER has significant growth potential, with the “scope to transform the group’s valuation.”
The manufacturer of engineering, electronic, sensor and mechanical equipment reported revenues ahead of expectations in its full-year trading update, with underlying earnings (EBITDA) in line with forecasts.