1Vancouver, British Columbia, May 27, 2013 - Investment firm Mackie Research has initiated coverage on Pure Technologies (TSX:PUR). Analyst Raveel Afzaal gives the company a buy recommendation with a 12-month target price of $5.40, a premium of 14% over the $4.75 price the day the report was issued.
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Pure Technologies offers a comprehensive suite of innovative technologies and services for inspection, monitoring, and management of physical infrastructure with a primary focus on water, wastewater and oil and gas pipelines markets.
A significant portion of the global infrastructure, particularly water and wastewater pipelines built in the middle of the 19th century, are fast approaching the end of their useful lives.
To date, the company has recorded revenues from more than 50 countries, with approximately 64% of the annual revenues coming from North America. The company has a sales backlog of more than $53 million, which does not include recurring annual revenues of about $6 million.
"Our Company had a solid first quarter, with the Core Americas market performing above expectations," stated Jamie Paulson, Chairman. "The Company continues to move its product offering forward in all markets."
The company is monitoring more than 927 kilometres of large-diameter pre-stressed concrete water pipes, a record distance to date, using the company's acoustic fibre-optic monitoring technology.
It also has a strong balance sheet with $29 million in cash and no debt. This puts Pure Technologies in an enviable position to make strategic acquisitions and pursue organic growth opportunities in a time when access to funding from capital markets remains difficult.
Analyst Raveel Afzaal stated, "We consider Pure Technologies as an excellent vehicle for investors desiring exposure to the fast-growing infrastructure renewal market. There is significant room for upside to our target price as Pure Technologies continues to benefit from economies of scale and delivers strong EBITDA growth."
The shares are currently trading at $4.80, and with 50.7 million shares outstanding, the company is capitalized at $243 million. This is below Mackie Research's target price of $5.40.
For more information, please visit the company's website www.PureTechLtd.com (http://www.PureTechLtd.com/) or contact Paul Moon, Investor Relations Manager at 403-266-6794 or email investor.relations@PureTechLtd.com (mailto:investor.relations@PureTechLtd.com).
For more information about Mackie Research or to obtain the report on Pure Technologies, contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com (http://www.mackieresearch.com/).
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