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Edison Issues ADR Research Update on Thin Film ElectronicsLONDON, November 30, 2015 /PRNewswire/ -- Thinfilm has reported Q315 results showing a 3.5% q-o-q decline in revenues and a 19.3% q-o-q increase in operating losses, mainly due to lumpy grant revenues and rising external development costs resulting from the ramp-up of production capacity. The key milestones during the quarter were Xerox's announcement of the launch of Thinfilm labels, the placing of a pilot order by Diageo, and Ypsomed announcing its intention to use NFC OpenSense in autoinjectables. We see the potential for news of further new order inflows, progress in capacity expansion and in product development to further increase interest in the stock in coming quarters. (Logo: http://photos.prnewswire.com/prnh/20130417/608168 ) Thinfilm has shown the ability to enter into licensing (Xerox) and large-scale sales agreements (Nedap), and has a very prospective pipeline (Diageo, Ypsomed, Australian wines). We see the main driver of value for the company as its ability to monetise these developments and its promising portfolio of technologies. Our DCF model gives rise to a valuation of $7.75 per ADR (previously $10.38). This is based on our foreast 76% CAGR in revenue to 2025, a terminal EBITDA margin of 28% (peak of 34% in 2020), terminal EBITDA growth of 3% and a WACC of 15%.
All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com. About Edison: We are an international equity advisory firm. We enable our client companies to achieve their capital market objectives. The team is made up of more than 80 analysts and investment professionals with many decades of experience. Our extensive company knowledge and industry expertise spans 10 business sectors and more than 700 listed companies globally. We give our corporate clients and investors privileged insight into global investment trends. Our distribution capability is key to ensuring a global investor audience can access our investment knowledge. Edison is authorised and regulated by the Financial Conduct Authority.
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