In a report titled Financing, Coupled with Industry Tailwinds Paves the Way for Substantial Growth, Clarus Securities analyst, Stephen Kammermayer has reinstated coverage on CEMATRIX with a $1.25 target or more than twice the value of the current trading price.

He makes important points in that the bid pipeline is approximately $350 million and contracts in hand or verbally awarded sit at $89.1 million.

He’s forecasting 2020 revenues of $27.6 million and EBITDA of $1.4 million. We note that the contracts in hand are equivalent to 3.2 times his 2020 revenue forecast.

He’s forecasting revenues of $38.6 million and EBITDA of $6.1 million for 2021 and revenues of $50.1 million and EBITDA of $10.9 million for 2022.

His $1.25 price target is based on an 8.5 multiple of 2022 EBITDA.

The report also mentions that CEMATRIX should benefit from two significant tail winds. First, the expected spend in infrastructure with the recent transition in the White House and secondly, CEMATRIX will benefit from the global shift to investing in more environmentally friendly alternatives such as cellular concrete, which replaces products such as EPS blocks.

With the recent closing of a $23 million financing announced on March 18th, Mr. Kammermayer expects CEMATRIX to use a portion of the funds to reduce debt as well as for growth capital and acquisitions.