Edison Issues ADR Outlook on Thin Film Electronics

Apr 13, 2016, 12:09 ET from Edison Investment Research

LONDON, April 13, 2016 /PRNewswire/ --

Thinfilm (THIN) is the global leader in printed electronics, which is a low cost and highly scalable method of creating smart labels for the Internet of Things (IoT). In recent months the company has announced a slew of pilot orders and partnerships with leading brands, consultants and packaging companies, including global drinks giant Diageo, labels leader Xerox and a major global FMCG producer. On a six- to nine-month horizon, we expect Thinfilm to translate this into strong growth in order volumes leading to a likely uptick in earnings forecasts and stock valuations.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

Our DCF value for Thinfilm has increased from $7.75 to $9.06 per ADR. This follows revisions to our model to reflect our view of improved revenue prospects, particularly for NFC OpenSense, and our expectation that the company will move straight from the recent de-bottlenecking of its sheet-based line to the installation of a 1bn+ capacity R2R line. These were partly offset by dilution from the Woodford share issue. We see key potential triggers for 2016 as stronger than expected order inflows and the potential for a move straight to R2R production with positive impact on capex and operating margin forecasts.

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: 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.

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:
Anna Bossong                      
Edison Investment Research        

Katherine Thompson              
Edison Investment Research        
+44-(0)20-3077-5730 tmt@edisongroup.com

Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:  

LinkedIn http://www.linkedin.com/company/edison-investment-research
Twitter  http://www.twitter.com/Edison_Inv_Res
YouTube  http://www.youtube.com/edisonitv
Google+  https://plus.google.com/105425025202328783163/posts

SOURCE Edison Investment Research