$PSID:Price Target of $0.15 by SeeThruEquity.......
NEW YORK, NY / ACCESSWIRE / May 24, 2016 / SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced that it has issued an update note on PositiveID Corporation (PSID).
The note is available here: PSID May 2016 Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
PositiveID Corporation, (OTCQB: PSID, "PositiveID"), is a life sciences company focused on developing and commercializing innovative products for biological testing, detection, and diagnostics. The company's flagship product, the Firefly Dx, is a real-time, handheld molecular diagnostic currently under development that utilizes a proprietary polymerase chain reaction (PCR) automated pathogen detection system, which can be used in the field for biological threat and infectious disease detection without the use of bulky lab equipment. Founded in 2001, PositiveID has amassed an impressive list of customers and partners, including The Department of Homeland Security, NASA, and the US Department of Defense, among others. With a product portfolio bolstered by the December 2015 acquisitions of E-N-G Mobile Systems (E-N-G) and Thermomedics, PositiveID appears to be off to a strong start to FY2016. The company reported 1Q16 results on May 17, 2016, with highlights as follows:
Revenues rose to $1.7mn, with growth coming primarily from momentum in the mobile labs business at E-N-G
PositiveID also appeared to benefit from scale, as 1Q16 operating losses narrowed from 1Q15
PSID issued a strong outlook, calling for continued growth throughout the year and a push towards reaching cash flow breakeven by FY17E
Highlights of note are as follows:
Acquisitions drive growth in 1Q16; tracking well with top line guidance for FY16E
PositiveID reported strong top line results in 1Q16, with revenues rising to $1.7mn from $0.1mn in 1Q15. The results were driven primarily by the acquisition of E-N-G, which experienced growth in its mobile labs business. We note that the company appears to be well on its way to meeting its FY16 guidance of $5mn - $6mn, and are maintaining our 2016E revenue estimate of $6.0mn, which would represent more than 100% revenues growth over 2015 revenues of $2.9mn.
Positive Outlook for 2016
PositiveID management issued a positive outlook for the remainder of 2016. In the company's 1Q16 earnings release CEO William Caragol stated that he believes PositiveID's "top line will continue to improve throughout 2016" and that the company can "make additional strides to improve gross margins and meet our goal of achieving cash flow positive." Although we acknowledge the inherent variability from quarter to quarter in PSID's business lines, we are encouraged by this commentary and the degree of growth in 1Q16. Indeed, the combined company's results showed healthy double-digit growth even when comparing to 1Q15 pro forma, as-if-consolidated revenues of $1.4mn. Moreover, the company appears to have continuing strong momentum in its mobile labs business, as PositiveID noted in April that it had shipped a $700,000+ 40-foot, BSL-3 compliant mobile laboratory, which will be recognized during 2Q16.
$0.15 price target for PSID
We are establishing a $0.15 price target for PositiveID, reflecting an updated share count. The target represents significant potential for upside from the recent price of $0.006, if realized. PositiveID seems to be off to a good start to 2016, with strong performance from recently acquired E-N-G and major milestones approaching for Firefly Dx. We see the company as significantly undervalued in light of guidance for $5mn-$6mn in FY16 revenues and the considerable time and investment put into development of its PCR product pipeline.
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About PositiveID Corporation
PositiveID Corporation is a life sciences tools and diagnostics company with an extensive patent portfolio. PositiveID develops biological detection and diagnostics systems, specializing in the development of microfluidic systems for the automated preparation of and performance of biological assays. PositiveID is also a leader in the mobile technology vehicle market, with a focus on the laboratory market and homeland security. Psidcorp.com
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
SOURCE: SeeThruEquity
