On Monday, Ascendiant Capital initiated coverage of LiqTech International (NASDAQ:LIQT), a Danish industrial firm specializing in advanced environmental filtration solutions. The analyst assigned a Buy rating to the stock with a price target of $5.15. LiqTech's core business revolves around their proprietary silicon carbide ceramic filters and associated systems, targeting a broad range of applications like industrial wastewater, marine scrubbers, and oil and gas water filtration.
LiqTech operates within a multi-billion-dollar market, with a particular focus on ceramic filters made from silicon carbide, as well as the related systems and services. In 2023, the markets that LiqTech serves were estimated to be worth at least $4 billion. Despite this, the company currently holds less than 1% of the market share, which suggests significant potential for growth.
LiqTech's financial health appears to be robust, with a reported $11.8 million in cash reserves as of the third quarter of fiscal year 2023. The current rate of cash burn is estimated at $5-6 million annually. Based on these figures, analysts project that LiqTech's cash reserves should sustain the company well into fiscal year 2025, with the actual duration dependent on the trajectory of sales growth.
This positive outlook on LiqTech's stock is grounded in the company's specialized market niche, potential for expansion within its target markets and market share, and its solid balance sheet.
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