Pioneering Technology Corp. (PTE:TSX.V) "successfully installed its latest fire prevention product in a prominent Ivy League school," wrote analyst Russell Stanley with Echelon Wealth Partners in a Sept. 12 report. This Canadian company "develops and markets cooking fire prevention technology and products."
This new Pioneering brand product incorporates "the heat sensor technology" of Innohome OY, a developer of fire safety devices for kitchens. The item contains two heat sensors, "allowing it to measure both excessive temperatures and the rate of temperature change," explained Stanley. The product works by setting off an alarm when danger of a cooking fire exists. If, after some time, the threat remains, the product then turns off the stove.
Pioneering accomplishing a first installation is a "positive step towards developing and monetizing products that are complementary to [its] lead product, SmartBurner," Stanley concluded.
This debut product "targets the electric smooth top range market," whereas SmartBurner "targets the electric coil stovetop market," wrote Stanley.
Pioneering markets its products "primarily to the multi-residential market and secondarily through retail channels," Stanley indicated. As such, SmartBurner "still has a large untapped market to penetrate (40M installed base in the U.S.)" and while it "targets the aftermarket, plans for a retail strategy are in development."
Adding this latest product to the company's line also is favorable, the analyst remarked. First, it "expands Pioneering's addressable market." Second, it allows the firm "to better leverage its existing distribution partnerships with Staples Business Advantage, HD Supply and Interline. We believe the company is just scratching the surface with these partners, so the addition of another aftermarket product could accelerate sales through this channel."
In general, Pioneering is "positioned well to accelerate growth," wrote Stanley. "On track to at least meet its FY17 revenue growth guidance of 50%" and with no debt and positive operating cash flow, the company is "free to support growth investments."
About Pioneering as an investment, Stanley concluded, "We continue to view PTE as an undervalued, underfollowed play on new safety requirements that should drive strong demand growth for the company's cooking fire prevention products."
Echelon has a Speculative Buy recommendation and $1.60 per share price target on Pioneering, whose stock is currently trading at around $1.00 per share.
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Disclosures from Echelon Wealth Partners, Pioneering Technology Corp., Sept. 12, 2017
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Russell Stanely, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes