Edison Investment Research Limited
London, UK, 30 July 2019
Edison issues outlook on Carbios (ALCRB)
Carbios's enzyme-based technology for the decomposition of plastic polymers is well placed to exploit the trend for the minimisation of plastic waste. With a strengthened financial position post the recent rights issue and an explicit timetable for the deployment of its technology, Carbios continues its transformation from a research body into a commercial enterprise. Our DCF model indicates a valuation of EUR13/share.
We have revised our DCF valuation to take account of the increased number of shares in issue as a result of the rights issue (6.9m vs 4.6m) and the latest projections for the commercial deployment of Carbios's technology (provided by Carbios at the time of the equity issue). The timetable expects commercialisation of biodegradation technology in 2020 and enzymatic recycling in 2023. The majority of projected revenue lies well into the future and remains highly uncertain, but our updated financial projections indicate a DCF-based valuation of c EUR13/share (EUR15/share before).
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