Anybody ever hear of them? Any opinions?
CATALYTICA, INC.
(NASDAQ: CTAL)
Recommendation:
BUY - $4 3/4 x $5 1/4
Report originally written: May 8, 1996
Analyst recommendation remains intact as of: July 22, 1996
Opportunity In Catalyst Technology
Initiating Coverage With A BUY Recommendation
Catalytica today announced an agreement with Pfizer, Inc. in which Pfizer will invest $15 million in Catalytica's Fine Chemical unit. This is a milestone
announcement in that it validates Catalytica's technology for developing unique processes used for manufacturing major pharmaceuticals.
We believe that this announcement may lead to other joint ventures with major pharmaceutical companies to develop drug manufacturing processes using
Catalytica's proprietary technologies.
We are confident that Catalytica has the capital available to fully develop their process for eliminating the production of nitrogen oxide (NOX) pollutants, a
byproduct of natural gas turbines. The company has been working closely with General Electric, the world's leading producer of large scale natural gas
turbines. Commercialization of this technology, potentially a $1 billion market, is scheduled for 1998.
We see an excellent opportunity for investors to get in on the ground floor of a company that has the potential of reaching $200 million in sales by the year
2000. We are initiating coverage with a BUY recommendation and a one year price target of $7.
1997 EPS EST:
$(0.05)
Fiscal Year:
December
1996 EPS EST:
$(0.30)
Shares Outstanding
19.2 Million
1995 EPS:
$(0.55)
52 Week Price Range:
$5 3/4 - $3 1/8
Market Cap (Mil)
$96
Insider Holdings:
40%
Book/Share:
$1.15
Institutional Holdings:
56%
Additional information is available upon request. Van Kasper & Company makes a market in the common shares of Catalytica, Inc. The author of this
document maintains an investment position in the shares of Catalytica, Inc.
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