Edison Issues Initiation ADR Update on Thin Film Electronics

USA Profile Username: jon@newsinnovations.com / edit profile Edison Issues Initiation ADR Update on Thin Film Electronics PR Newswire LONDON, May 20, 2016 LONDON, May 20, 2016 /PRNewswire/ -- Thinfilm (THIN) has announced plans to commence R2R production by end-2017 and also plans to move to a larger plant in the US in 2017 to accommodate the line. We see the news as supportive of our $9.06/ADR DCF valuation because of the prospects for greater efficiencies from the new plant. Nevertheless, we expect THIN to have to further de-bottleneck its existing sheet-based plant in 2016/17 in order to meet product demand, particularly for NFC OpenSense. In addition, property lease costs are expected to rise in 2017 with the opening of the new facility, leading us to increase our cash burn forecasts for 2016 and 2017 by $13m. Thinfilm's Q116 earnings reflected the hiatus in EAS unit production in the first quarter, but were otherwise in line with expectations.      (Logo: http://photos.prnewswire.com/prnh/20130417/608168 ) We have increased our 2016 capex forecasts and reduced our 2017 earnings estimates to reflect the capex and opex impacts of the R2R plan. We believe that Thinfilm should be able to drive greater cost savings from the new plant and as a result have not revised our DCF valuation of $9.06 per ADR.   Click here to view the full report. All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com. About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. 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: Anna Bossong     Edison Investment Research +44(0)20-3077-5737 Katherine Thompson Edison Investment Research +44(0)20-3077-5730 tmt@edisongroup.com Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:   LinkedIn http://www.linkedin.com/company/edison-investment-research Twitter  http://www.twitter.com/Edison_Inv_Res YouTube  http://www.youtube.com/edisonitv Google+  https://plus.google.com/105425025202328783163/posts Follow Us To change the settings for your profile(s) or email delivery, go to https://prnmedia.prnewswire.com/profile/?action=editProfile and select the profile you would like to edit. You can select the industries, subjects, languages, geographical areas, companies, delivery options and delivery frequencies of your choice. In addition to current press releases, you can also find archived news, corporate information, photos, tradeshow news and much more on the PR Newswire for Journalists website: https://prnmedia.prnewswire.com To contact us, email: mediasite@prnewswire.com Please do not reply to this email; this is an automatically generated message. Copyright © PR Newswire Association LLC. All Rights Reserved. A UBM plc company. Our mailing address is: 350 Hudson Street, Suite 300 New York, NY 10014-4504