In a May 31 research report, analyst Doug Taylor with Canaccord Genuity addressed Patriot One Technologies Inc.'s (PAT:TSX.V) quarterly update, which discussed product development and potential partnerships.
As far as product advancement, "a fully commercialized solution still seems to be months away," noted Taylor. Patriot One continues honing its product, PATSCAN CMR, a covert weapons detection screening system. Now, the company is enhancing the device's antenna component, "which likely means additional testing," the analyst wrote. Additionally, Patriot One has not yet rolled out its next two development centers, which is taking longer than expected.
Given the delay, Taylor added, "We continue to model a material ramp in revenue in FY19 though we have trimmed our near-term forecast as the company continues to emphasize 'getting it right' as opposed to rushing out a half-baked offering."
In terms of partnerships, the potential exists for Patriot One to work with big industry names, which could help speed up product development and/or provide complementary technologies. "The company teased that it is in advanced discussions on multiple strategic partnerships, though none at this point is finalized," Taylor reported. Such partnerships could be a catalyst for Patriot One's stock.
In the interim, Canaccord Genuity is "keeping an eye on the prize," Taylor wrote. It remains positive on Patriot One because demand for an available product like the one the company is developing "is substantial," as indicated by its backlog of $2.7 million in orders.
The technology company is working diligently to ensure its final product is effective and scalable. Success in achieving this end would significantly boost Patriot One's stock, Taylor said.
Canaccord Genuity has a Speculative Buy rating and a CA$2.50 per share, 12-month price target on Patriot One. The stock is currently trading at around CA$1.62 per share.
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Disclosures from Canaccord Genuity, Patriot One Technologies Inc., Estimates Revised, May 31, 2018
Patriot One Technologies, Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to Patriot One Technologies, Inc.
In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from Patriot One Technologies, Inc.
In the past 12 months, Canaccord Genuity or any of its affiliated companies have been lead manager, co-lead manager or co-manager of a public offering of securities of Patriot One Technologies, Inc. or any publicly disclosed offer of securities of Patriot One Technologies, Inc. or in any related derivatives.
Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Patriot One Technologies, Inc. in the next three months.
An analyst has visited the material operations of Patriot One Technologies, Inc.. No payment was received for the related travel costs.
Disclosures are available here.