Target 20c

Here is the latest Pitt st research. These guy called both BRN and WBT extremely well. From 70c they had a $4.25 target on WBT. Todays report has a 20c target on BLG. Its 19 pages but here is the cover sheet. Sorry about format.

https://www.pittstreetresearch.com/bluglass



All systems go

Share Price: A$0.057BluGlass (ASX:BLG) is growing customer orders for its firstsuite of gallium nitride (GaN) lasers. Following productlaunches at Photonics West in San Francisco in January,several industry-leading customers have purchased,including OEMs in the quantum and industrial segments, anda world-leading energy research institution. All customersare qualifying BLG’s products within their own applications.Once qualified, BLG expects to secure recurring large-volumeorders from these customers as well as orders from newcustomers. BLG is now well-funded to expedite revenuegeneration having completed a $10.2m capital raise to globalinstitutional and sophisticated investors.

Flexibility is key
BLG has six products in market, spanning violet and bluewavelengths in both single-mode and multi-mode devices.The range enables BLG to serve a diverse range of customerswith different end-uses. BLG’s GaN lasers are suitable forseveral end markets such as machine vision, 3D printing and3D imaging, quantum sensing and computing, materialsensing and flow cytometry, all of which require visible lasersof different power and precision needs.
Validating Fremont
BLG acquired a semiconductor fabrication facility in Fremont,California, in April last year, pivoting from outsourcedcontract manufacturing. BLG is already reaping the benefitsof in-house manufacturing, significantly fast-tracking itsdevelopment and commercialisation progress, achievingseveral key operational milestones, and enabling the launchof commercial products. The company demonstratedfeasible reliability of over 500 hours back in November withits lasers meeting or exceeding performance benchmarksfrom contract manufacturers during testing. These stepssignificantly de-risk BLG’s technical and commercialisationroadmaps and validates the decision to shift manufacturingto an in-house model.

Valuation of US$216.2m/A$324.9m
With BLG securing first sales, we believe it is the right time tovalue the company. We value BLG at US$219.2m orA$324.1m at current exchange rates, using an M&A model.This equates to A$0.20 per share. Please see pages 13-15 formore on the valuation rationale and the key risks.ASX: BLGSector: Technology20 March 2023Market cap. (A$ m) 85.0# shares outstanding (m) 1,490.7# shares fully diluted (m) 1,671.1