Here You Go,,,,,,,,,,,
Applied DNA Initiated at Outperform
By: Grant Zeng, CFA
September 03, 2010 | Comment(s): 0
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APDN
Unique Anti-Counterfeiting Technology
Applied DNA Sciences, Inc. (APDN - Analyst Report) is a biotech company engaged in the research, development and commercialization of botanical-DNA based security and authentication solutions that can help protect the products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. The company has authentication labs and manufacturing facilities in Stony Brook, New York and Huddersfield, Yorkshire, UK.
Currently, Applied DNA markets two principal anti-counterfeiting and product authentication solutions: SigNature DNA and BioMaterial Genotyping; both can be used in numerous industries, including cash-in-transit (transport and storage of banknotes), textiles and apparel, identity cards and other secure documents, pharmaceuticals, wine and luxury consumer goods. Both platforms have spawned a series of product offerings which differ by the industry vertical to which the product is sold.
Applied DNA’s technology holds competitive advantages over its competitors. The company’s principle product, SigNature DNA, uses a unique DNA technology which cannot be replicated. The core technology of Applied DNA is to use the DNA of everyday plants to mark objects in a unique manner, and then identify these objects by detecting the absence or presence of the DNA.
The company’s products target the extraordinary large cash-in-transit and general anti-counterfeiting markets. We expect continued rapid growth of the general anti-counterfeiting market in the next few years. Therefore, the outlook for Applied DNA is very positive, in our view.
Applied DNA has an experienced management team and the company has an appropriate growth strategy in place to take advantage of the current demand for its products.
We are optimistic about the company’s prospects. With an ever-growing anti-counterfeiting business worldwide, combined with its unique technology and broad range of product offering, the company is well positioned to boost both its top line and bottom line in the coming years.
According to our long term financial model, the company’s revenue will grow at a huge compound annual growth rate (CAGR) of 105% in the next five fiscal years from 2010 to 2015. The company will become profitable in fiscal 2014 with earnings per share (EPS) of $0.01.
We rate the company an Outperform. Our six to twelve-month price target is $0.20.
Read the full analyst report on APDN
