Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.
Research House: Nomura
Company Name: BIOSENSORS INT'L GROUP, LTD.
Research House: Nomura
Biosensors (B20.SG) is off 2.9% at $1.01, off its early $0.96 low, which was hit after it announced a private placement of 216.3 million new ordinary shares, to raise $200.8 million.
Nomura, which maintains its Buy call and lowers its target price to $1.40 from $1.50, estimates EPS will be diluted by 2.0%/17% for FY11/FY12F.
Nomura, which maintains its Buy call and lowers its target price to $1.40 from $1.50, estimates EPS will be diluted by 2.0%/17% for FY11/FY12F.
“However, the group’s balance sheet will improve significantly with a net cash of US$188 million.” With the stronger balance sheet, the house says Biosensors can pursue clinical trials to strengthen its new BioFreedom product and seek new M&A targets in China to strengthen its product range.
In addition, it can also repay its $48.75 million in bonds (8.5% interest rate) if bondholders choose to redeem.”
It adds, with the share price pullback, Biosensors “remains attractively valued even after accounting for the dilution from the placement. The key catalysts are the approval of the Nobori stent in Japan, potential listing in Hong Kong and CE Mark for its next-generation BioFreedom stent.”
No comments:
Post a Comment