had its target price increased by Atrium Research after two recent developments, reported analyst Nicholas Cortellucci in an Aug. 3 research note.
"We are increasing our target price based on strong execution on the Hydrogen Technologies side as well as increasing oil prices," Cortellucci explained. Hydrogen Technologies is Jericho's subsidiary that developed the patented DCC hydrogen-fueled boiler.
61% Return Projected
Atrium's new target price on Jericho is CA$0.50 per share, up from CA$0.40. The cleantech firm's current share price is about CA$0.31 per share. The gap between these current and target prices implies a compelling return for investors of 61%.
Jericho remains a Buy.
First Order Received
Cortellucci discussed Jericho's latest achievements. Sooner than Atrium expected it would, the Canadian energy company sold its first zero-emission DCC steam boiler to an unnamed university in the West.
This sets a precedent for other higher education facilities, especially since 1,173 of them worldwide intend to reduce emissions by 2030, according to Jericho's management. This market represents a significant opportunity for the Canadian company.
Also, this initial sale "positions Jericho as a key industry leader and first mover in its category," added Cortellucci. "We expect [the company] to build on this momentum and continue to sign boiler contracts over the coming quarters."
Additional sales will likely come from the 30-plus studies involving the DCC steam boiler that are in progress, noted the analyst. Further contracts could move up Jericho's share price.
Jericho's second recent development is a new collaboration with a leading global alcoholic beverage company. The two parties agreed to conduct a study on the use of DCC hydrogen boilers to decarbonize production facilities. For the analysis, Jericho's boilers will be installed in the partner's production facilities in four countries.
"Decarbonization remains a pressing issue in the beverage industry and plays into Jericho and Hydrogen Technologies' value proposition," wrote Cortellucci.
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- Jericho Energy Ventures Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Jericho Energy Ventures Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Jericho Energy Ventures Inc.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Atrium Research, Jericho Energy Ventures Inc., August 3, 2023
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