WBT 6.47% $3.29 weebit nano ltd

Intel $6bn acquisition of Mellanox !!, page-73

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    For new readers, a recent analyst report with quote below:

    https://www.stateone.com.au/Download/Download?file=WBT_20190130.pdf&downloadType=PUBLICATIONS


    30 January 2019

    Risk-weighted target price: 6cps

    Underpinned by an assumed 20-year royalty stream, we calculate WBT’s unrisked equity value at A$157m - equivalent to 9c per fully diluted share (pre 25:1 share consolidation scheduled for February 2019). Attaching a 33% risk discount – primarily because of technology risk associated with developing the ReRAM product to a commercial stage, and poor visibility on the timing and metrics of any commercial agreement - we calculate WBT’s risk-adjusted equity value at A$105m or 6c per diluted share.

    At current share price levels, we believe that WBT offers attractive risk-adjusted upside potential with further significant upside potential as details of any commercial agreement are disclosed and the risk-discount is unwound. We initiate coverage with a Speculative Buy (Higher Risk) recommendation.


    Opinion only, not advice, dyor etc
    Last edited by order: 07/02/19
 
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