had a blip put out.to outperform $8 target..
Posted by scooz on :
Wedbush Initiates Coverage on Nexxus Lighting (NEXS) with an Outperform; Superior Efficacy Supports Bright Outlook
January 5, 2010 1:20 PM EST
Wedbush initiates coverage on Nexxus Lighting (Nasdaq: NEXS) with an Outperform rating. Price target $8.
Wedbush analyst says, "We believe Array product performance is due to Nexxus’ patented selective heat sink technology combined with an array of low-power high-efficacy LEDs, while competitors mostly use high-power highefficacy LEDs and a large finned aluminum heat sink. Light output and energy efficiency drive customers’ paybacks, and customers report Array paybacks below two years without available incentives. We expect building traction and forecast Array sales of $10 million and $25 million in 2010 and 2011, up from $1.4 million in 2009Following the company’s recent capital raise, we look for management to drive growth in Array LED lamps, targeting the incandescent bulb replacement opportunity...We believe a 3.0x multiple is justified as it represents a discount to trading comparables. Shares of Nexxus are currently trading at 2.4 and 1.2 price/sales multiples on 2010 and 2011 estimates, respectively. We believe that with the successful ramp of Array LED lamp products Nexxus could achieve $75-$100 million annual revenue within the next three to four years." __________________