Edison Investment Research Limited: Edison issues outlook on Carbios (ALCRB)

London, UK, 30 July 2019

Edison issues outlook on Carbios (ALCRB)

Carbios's enzyme-based technology for the decomposition of plastic polymers is well placed to exploit the trend for the minimisation of plastic waste. With a strengthened financial position post the recent rights issue and an explicit timetable for the deployment of its technology, Carbios continues its transformation from a research body into a commercial enterprise. Our DCF model indicates a valuation of EUR13/share.

We have revised our DCF valuation to take account of the increased number of shares in issue as a result of the rights issue (6.9m vs 4.6m) and the latest projections for the commercial deployment of Carbios's technology (provided by Carbios at the time of the equity issue). The timetable expects commercialisation of biodegradation technology in 2020 and enzymatic recycling in 2023. The majority of projected revenue lies well into the future and remains highly uncertain, but our updated financial projections indicate a DCF-based valuation of c EUR13/share (EUR15/share before).

Click here to view the full report.

Subscribe to Edison's content to receive reports by email.

All reports published by Edison are free-to-access and available on the website.

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Graeme Moyse, +44 (0)20 3077 5700

industrials@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv