Read original blog entry
Synthesis Energy Systems (SYMX) is a development-stage enterprise engaged in the commercialization of technologies to convert low grade coal, coal waste and biomass into a variety of valuable energy products. This patented U-GAS technology uses heat, pressure and air to chemically reform low-grade coal into synthetic gas or 'syngas.'
We are maintaining our Buy recommendation on Synthesis Energy Systems, but are lowering our 12-month target price from $11.00 to $5.00 per share. Synthesis has a compelling story as the wide spread between the cost of its inputs (low-quality coal) and outputs (syngas, methanol, various chemicals) create significantly high gross margins.
With the strategic partnerships and alliances the SES has formed, it should be able to gain market share and grow its global footprint while taking on a fraction of the operational and financial risks associated with operating independently. The U-GAS technology represents a competitive advantage as its low cost, flexible nature should make Synthesis attractive to potential customers.
Read the full analyst report on SYMX
Get real-time market insights and profitable stock recommendations from the team of analysts at Zacks Equity Research. See all todays Analyst Blog entries on Zacks.com.