Noble Capital reiterates Outperform rating on Dyadic, citing potential for its C1 technology to fight deadly coronavirus

Noble Capital Markets reiterated its Outperform rating and an $11 price target for Dyadic International Inc (NASDAQ:DYAI), noting that the company’s proprietary C1 enzyme production platform may help fight the coronavirus that has killed 132 people in China and infected thousands more worldwide.  “We believe C1 technology may provide low cost and high-efficiency approach to manufacture potential treatments to curtail the spread of coronavirus outbreak,” wrote Ahu Demir, a senior research analyst, in a note to investors. “In our view, the current stock price does not reflect the value of Dyadic's portfolio. We believe Dyadic's stock price is poised to move higher upon additional data and collaborations in 2020.” READ: Dyadic CEO touts how firm’s technology may speed coronavirus vaccine creation on Fox Business Dyadic’s stock, which has gotten a lot of attention from investors as the coronavirus spreads worldwide, trades around $5.60 a share.  According to the Centers for Disease Control and Prevention, 6,100 cases of the coronavirus have been confirmed in 16 countries since the virus was first identified in China on January 7, including five positive infections in the US and suspected cases in 26 states. On Monday, the CDC recommended all non-essential travel to China be avoided as the number of deaths has risen to 106. Person-to-person spread is likely to occur in the US, however, the virus is not currently spreading in the US community and the CDC has issued guidance on how to reduce the risk. There is currently no vaccine for the strain of deadly coronavirus. There are three prongs to treating a virus like the coronavirus: developing a vaccine, having a high-quality diagnostic test and a therapeutic.  Looking forward, Amir added: “We forecast $123 million, $262 million and $416 million of sales in F2023, F2024 and F2025, respectively. We calculated a terminal value of $1.2 billion. We are lowering the discount rate to 12% from 15% based on the recent data update and the partnerships. Based on our valuation, we are arriving at our price target of $11.” Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham