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Edison Issues Initiation ADR Update on Thin Film ElectronicsLONDON, May 20, 2016 /PRNewswire/ -- Thinfilm (THIN) has announced plans to commence R2R production by end-2017 and also plans to move to a larger plant in the US in 2017 to accommodate the line. We see the news as supportive of our $9.06/ADR DCF valuation because of the prospects for greater efficiencies from the new plant. Nevertheless, we expect THIN to have to further de-bottleneck its existing sheet-based plant in 2016/17 in order to meet product demand, particularly for NFC OpenSense. In addition, property lease costs are expected to rise in 2017 with the opening of the new facility, leading us to increase our cash burn forecasts for 2016 and 2017 by $13m. Thinfilm's Q116 earnings reflected the hiatus in EAS unit production in the first quarter, but were otherwise in line with expectations. (Logo: http://photos.prnewswire.com/prnh/20130417/608168 ) We have increased our 2016 capex forecasts and reduced our 2017 earnings estimates to reflect the capex and opex impacts of the R2R plan. We believe that Thinfilm should be able to drive greater cost savings from the new plant and as a result have not revised our DCF valuation of $9.06 per ADR. Click here to view the full report. All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com. About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact: Katherine Thompson Contact details: Learn more at http://www.edisongroup.com and connect with Edison on: LinkedIn http://www.linkedin.com/company/edison-investment-research
SOURCE Edison Investment Research 
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