Cenkos has kept its 'buy' rating and 280p share price target for graphene specialist Directa Plus, adding this allows nothing for the potential from a significant environmental tender currently in progress in Romania.
Revenues in 2021 were 2% above expectations at €8.6mln said the broker, while underlying losses were reduced to €2mln from €2.6mln.
Cenkos is forecasting revenues to rise 64% to €14.1mln in 2022 but said that the final decision on the award of the Romania tender is expected in the summer of 2022 and offers the potential for a further revenue contribution in the second half.
“The size of the award is multiples of anything yet won to-date; however, there remains uncertainty over the start date, the allocation to [partner] Setcar, and the revenues that can therefore be recognised in FY22.”.
Elsewhere, momentum is building behind graphene with demand supported by a strong market outlook, said Cenkos, with expectations for it to more than double in value over the next three years reaching more than US$2bn in 2024.
“Our valuation of 280p leaves significant room for upgrades as and when the environmental division contract award is announced, but also strong traction in other verticals and geographies.”