Profire Energy, Inc. (PFIE) Research Update Released
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New York, NY - February 27, 2014 (www.investorideas.com newswire) Taglich Brothers released an updated research report on Profire Energy, Inc. (PFIE) and reiterated a Speculative Buy rating with a 12-month price target of $4.50 per share based on a multiple of 30X discounted FY16 EPS. The report noted the following key investment considerations:
Revenue growth should be driven primarily by increased US sales. Over the past year, the company has gained market share in the US and since pending legislation changes were clarified July 1, 2013, Canadian sales have shown significant improvement.
US gains are not likely sustainable at recent rates. We project increased competition will slow the US growth rate to approximately 20% in FY15. This would imply a US market penetration rate of 14% in FY15, up from 11% in FY14.
For FY14, we raised our revenue projection to $35.2 million from $32.7 million and kept our EPS projection unchanged at $0.14 reflecting 3Q14 results. For FY15, we raised our revenue projection to $41.1 million from $37.5 million but kept our EPS projection unchanged at $0.16 reflecting greater than anticipated sales in Canada and higher G&A expenses. For FY16, we project revenue of $44.7 million and EPS of $0.18 driven by increased US market share.
3Q14 revenue (reported 2/14/14) increased 169% to $9.5 million and EPS increased to $0.03 from a loss of $(0.01) on a strong gain in US sales. We projected 3Q14 revenue of $7.3 million and EPS of $0.03.
Profire Energy, Inc., headquartered in Lindon, Utah, manufactures, installs and services oilfield combustion management systems and related burner products that aid oil and natural gas producers in the safe and efficient development and transportation of carbon-based fuels.
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