SeeThruEquity Initiates Coverage on NEAH Power Systems (OTCBB: NPWZ) with Price Target of $0.05

NEW YORK, NY / ACCESSWIRE / May 28, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage of NEAH Power Systems, Inc. (NEAH) (PINKSHEETS: NPWZ) with a Price Target of $0.05.

The report is available here: NPWZ Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

“NEAH is an exciting new energy company which has invested over $50mn developing proprietary power solutions technology. The company has announced several new business developments, including a potential licensing opportunity with the Defense Research and Development Organization of the Government of India, an agreement with defense integrator Tectonica Australia, and the upcoming release of its new BuzzBar Suite(TM) of consumer portable energy solutions,” stated Ajay Tandon, CEO of SeeThruEquity. “We are initiating coverage with a 12-month price target of $0.05 per share.”

Based in Bothell, WA, NEAH develops novel fuel cell-cell based power generation and lithium ion-battery storage solutions targeting the industrial, government, military, and consumer markets. The company’s pending acquisition of lithium ion storage solutions company Shorai will provide NEAH with a stable sales foundation from which to grow the business. We see NEAH as an intriguing high risk / high reward growth opportunity in the new energy segment of the technology sector.

Additional highlights from the report are as follows:

Shorai acquisition a potential game changer

NEAH announced it had reached an agreement to acquire Shorai, Inc. (“Shorai”) in January 2015 for a combination of cash and preferred stock. Shoria is a leading provider of lithium ion-based power solutions for the consumer motorsports industry, which we believe dovetails nicely with NEAH’s core business. The pending acquisition should provide an immediate lift to NEAH’s scale and product breadth, as Shorai generated $4mn in revenue during calendar 2014 with expanding distribution of its power sports and starter battery solutions in the motorsports industry. Shorai’s products have applications in the powersports, industrial and military markets as they transition from legacy lead acid batteries to lithium-ion based power solutions. Importantly, NEAH indicated that the acquisition of Shorai should be EBITDA-accretive, and Shorai founder David Radford will stay with the combined company and join the NEAH Board of Directors.

Accelerating commercialization efforts in existing NEAH business

In addition to the boost from the pending acquisition of Shorai, the core NEAH business appears to be gaining momentum in the early phases of commercialization. NEAH has three key areas of business: the BuzzBar Suite for portable consumer power solutions, the PowerChip(TM) silicon-based fuel cell for corporate, military and government use, and the Formira(TM) Hydrogen on Demand (HODTM), which has applications in off-the-grid power solutions and unmanned aerial applications. The company recently generated revenue from its flagship PowerChip(TM) product line, as part of a large potential opportunity with the Government of India. Management has stated that this has the potential to lead to 10mn+ licensing opportunity, which we believe would be a significant milestone and game changing development for the company, if achieved. On the consumer front, NEAH is expected to introduce its 3rd generation BuzzBar Suite(R) product line this year, which has potential as a portable consumer power solution capable of charging a smartphone 5x with each BuzzBar. Like the PowerChip(R), the Formira(TM) HOD(R) product line has a long sales cycle, but the company has made some intriguing announcements over the last year, with potential commercial activities in unmanned aerial vehicles, such as the Silent Falcon, and a partnership for off-the-grid applications with Tectonica Australia.

Initiate coverage with a price target of $0.05

Our analysis indicates a fair value estimate of $0.05 per share (detailed on page 10), implying an upside of 400% from the recent price of $0.01. We view NEAH as a high-risk/high-reward investment opportunity in the technology / new energy space with several potential catalysts ahead over the next twelve to 18 months.

Please review important disclosures on our website at www.seethruequity.com. 

About NEAH Power Systems, Inc.

NEAH Power Systems, Inc. is an innovator and supplier of cutting-edge power solutions for the military, transportation and portable electronics industries. NEAH Power’s long-lasting, efficient, and safe solutions include patented and patent pending PowerChip(R), Formira(R) and the BuzzBar Suite(R) of products. Most recently, NEAH Power Systems was a 2012 ZINO Green Finalist, 2010 WTIA Finalist, and 2010 Best of What’s New Popular Science Award. For more information visit www.NEAHpower.com.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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