NEW YORK, NY / ACCESSWIRE / December 3, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update note on Nephros, Inc. (NEPH) with a Target Price of $1.80.
The report is available here: December 2018 Update Note.
Based in South Orange, NJ, Nephros, Inc. (OTCQB: NEPH "Nephros") is a commercial stage medical device company, with innovative filtration products targeting large market opportunities including hospital infection control and advanced renal care. Nephros was founded by healthcare professionals associated with Columbia University Medical Center / New York Presbyterian Hospital to develop a hemodiafiltration (HDF) device as an alternative to hemodialysis. Nephros developed proprietary technology to accomplish this goal, and in addition to commercializing an HDF System, Nephros also developed advanced filtration devices for a variety of applications where ultrapure filtration is of potential value.
On November 8, 2018, Nephros reported 3Q18 results which showed a continuation of strong revenue growth over the last several quarters, with highlights as follows:
- Revenues grew by 88% YOY in 3Q18 to reach $1.7mn versus $0.9mn in 3Q17. Growth was driven by increased products sales, which rose by 96% YoY to reach $1.6mn, versus $0.8mn in 3Q17.
- Nine consecutive quarters of growth. NEPH 3Q18 results marked the ninth consecutive quarter of 60% average YoY revenue growth, as the company continues to expand its presence in the filtration market. For the first three quarters of 2018, revenues were $4.1mn, up 62.4% versus $2.5mn the comparable year-ago period..
- Guidance for $6mn in revenues for 2018. Nephros reiterated FY2018 guidance for revenues of $6mn for the year, as management sees growth climbing in 4Q18. If achieved, 2018 revenues of $6mn would represent 57.5% annual growth versus 2017 revenue of 3.8mn.
- Improved balance sheet. Nephros ended the quarter with a healthy cash position with consolidated cash of $5.3mn. The amount included $3mn of cash held by subsidiary Specialty Renal Products, Inc., which was raised in a private placement announced in September.
- NEPH EPS was a loss of ($0.01) versus ($0.01) in 3Q17. For the first three quarters of 2018, EPS was ($0.04). Management reported improving returns on its commercial filtration business, offset by investments in its second-generation hemodiafiltration systems, which are the lead product line in the company's development-stage subsidiary, Specialty Renal Products, and are anticipated to reach commercialization by 2020, assuming FDA clearance.
- Nephros management reiterated plans to uplist shares to a national exchange. The company has stated that it will pursue a reverse split as part of this process, with specifics to be determined in the future in order for the company to comply with minimum bid thresholds.
NEPH target unchanged
Our target for Nephros is unchanged at $1.80 following 3Q18 results. We view Nephros as an intriguing high risk / high reward growth company in the medical instruments industry with several potential catalysts ahead in hospital infection control, dialysis and commercial filter markets.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Nephros, Inc.
Nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters, as well as a hemodiafiltration system for the treatment of patients with End Stage Renal Disease. Nephros filters or ultrafilters are used primarily in medical applications in various settings. Nephros ultrafilters are used in hospitals and medical clinics for added protection in retaining bacteria (i.e. Legionella, Pseudomonas), virus and endotoxin from water. These ultrafilters provide barriers that assist in improving infection control with showers, sinks, and ice machines. Additionally, these ultrafilters are used by dialysis centers for assisting in the removal of biological contaminants from the water and bicarbonate concentrate supplied to hemodialysis machines and the patients. www.nephros.com.
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.
SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.