Edison Issues ADR Update on Thin Film Electronics

Feb 22, 2016, 12:52 ET from Edison Investment Research

LONDON, February 22, 2016 /PRNewswire/ --

Thinfilm has secured $42m in new funding from Woodford, which has agreed to acquire 17.8% of the shares. The company has also announced two NFC OpenSense deals: an exclusive partnership to deliver the technology to clients of Arc, a shopper marketing agency within Leo Burnett, and a collaboration with Constantia Flexibles, a leading manufacturer of flexible packaging and labels. These deals further underpin our expectation of substantially increased order volumes for NFC OpenSense from H216, not only in security-conscious areas such as pharma and beverages, but also across the broader consumer spectrum. If realized, we see considerable upside potential for the earnings outlook and valuation, especially now that financing is assured for the year ahead.

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

If Thinfilm can establish itself in the wider consumer products markets, we see significant potential to increase our sales forecasts from 2017 and to increase our DCF valuation, currently $7.77 per ADR ($7.00 after adjusting for the planned equity issue). Investor confidence should be increased by the funding security provided by the new equity issue and the presence of Woodford on the share register.

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.

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

For more information please contact:
Anna Bossong                          
Edison Investment Research        

Katherine Thompson              
Edison Investment Research        

SOURCE Edison Investment Research