NEW YORK CITY Dec. 10, 2003 (PRIMEZONE) -- (Investrend Research Syndicate) -- Investrend Research analyst Justin Canivet, CFA, has issued an update on Rectractable Technologies (AMEX:RVP), assigning the company a "Strong Buy / 5" rating and a 12-month Target Valuation of $11.
Canivet said revenues for the September quarter were below expectations but the reiteration of the rating and target are based on the company's "continuing strong fundamentals."
"Despite the shortfall, however, we still expect to see revenues increase substantially over the course of the next several quarters," said Canivet, noting that Retractable continues to maintain a strong working capital position, and its accumulated deficit now stands at $38.3 million compared to $46.9 million last year. Also, said Canivet, the company has been added to the Russell 3000.
"When compared to the Company's peer group, our analysis indicates that shares of Retractable Technologies continue to be undervalued," he stated.
"Considering all of the associated risks and rewards, Retractable Technologies clearly shows significant potential of becoming a more formidable competitor in the estimated 24 billion-unit international annual syringe market," Canivet concluded, saying he expects its fractional market share in safety needle devices to "change very soon" since its "recent litigation settlements include provisions intended to facilitate the sale of Retractable's Vanishpoint(r) products to Premier and Novation facilities throughout the U.S."
Justin Canivet, CFA, is a member of the Association for Investment Management Research (AIMR) and the Toronto Society of Financial Analysts (TSFA). He has served on the buy-side as Portfolio Administrator for Sceptre Investment Counsel, on the sell-side as Equity Research Associate for Yorkton Securities, and worked for State Street Trust Company in Toronto. He is currently working as an Equity Research Consultant for Mundus Investment Research. He is a graduate of Wilfrid Laurier University with an Honours degree in Economics and holds the Chartered Financial Analyst designation. Canivet has specialized in research coverage for several different industry sectors.
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