SeeThruEquity Initiates Coverage on Blue Sphere Corporation (OTCBB: BLSP) with a Price Target of $0.16
NEW YORK, NY / CRWEPRESSRELEASE / September 9, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage of SeeThruEquity Initiates Coverage on Blue Sphere Corporation (OTCMKTS:BLSP) with a Price Target of $0.16.
The report is available here: BLSP Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Based in Israel, Blue Sphere Corp. (“BLSP”) operates as a clean energy company that develops, acquires, manages and owns waste-to-energy projects. BLSP’s primary focus is providing custom solutions globally to produce clean energy out of waste with a build-own-operate business model. The company focuses on developing projects such as waste-to-energy, biogas, and landfill gas projects. Specifically, BLSP is currently focused on three types of projects: anaerobic digestion to electricity, landfill gas to energy, and anaerobic digestion to renewable natural gas. BLSP has ongoing projects in the United States, Italy, and Israel.
“As a clean energy company, BLSP is poised for rapid growth operating in one of the fastest growing markets. BLSP has a proven track record of complete development and closing of two large US projects. BLSP is in a unique and strong position with financial backing from top financial organizations. These financial organizations include Duke Energy, National Grid, and York Capital Management. With an experienced management team, available cash, secure cash flows for many years and a substantial flow of new projects in the pipeline, BLSP has a promising future. We believe Blue Sphere to be undervalued with the potential of yielding huge upside return to shareholders. BLSP is targeting a multi-billion dollar market with a futuristic strategy that has gained support from top financial organizations and along with an experienced management team, BLSP appears to be a worthwhile investment,” stated Ajay Tandon, CEO of SeeThruEquity. “We are initiating coverage with a 12-month price target of $0.16 per share.”
Additional highlights from the report are as follows:
Potential leader in the growing waste-to-energy (WTE) market
The global waste-to-energy (WTE) market earned close to $18bn in revenue in 2012 and is projected to increase up to $37bn by 2020. There is a strong shift globally towards green energy and with the decreasing amount of landfill area; innovation for waste disposal is in demand. With the added assistance from state and federal programs, companies are finding ways to implement waste-to-energy projects into their business models. BLSP is specifically focusing on converting food waste into energy. The waste-to-energy market is currently serviced by very few and small-scale competitors and BLSP looks to gain a 5% to 7% share of this market. BLSP looks to bring in revenue from multiple sources including feed-in-tariffs, tipping fees, and through the sale of residual heat and compost.
Worldwide projects displaying early success of business model
Blue Sphere currently has two ongoing projects in the US, seven in Italy, and one in Israel. Within the US, BLSP has successfully funded and started construction of two large waste-to-energy facilities that are expected to bring in $6mn during 2015 with recurring cash flows. This build-own-operate model is proving to be successful for BLSP and management is planning on expanding their operation into new markets. This model generates revenue from Tipping Fees and Power Purchase Agreements (PPA) with electric companies and by also selling disposal by-products. This strategic one-stop shop approach has proven to be attractive to project owners and will help differentiate themselves in a positive manner from their competitors.
Strong position with backing from top financial organizations
Blue Sphere has gained financial backing from top financial organizations such as Duke Energy, National Grid, York Capital Management, and York Renewable Energy Partners. BLSP signed a 15-year power purchase agreement with Duke Energy to buy electricity from its Charlotte, NC facility. National Grid has signed a power purchase agreement for BLSP’s Rhode Island Plant. York Capital Management has invested in both BLSP’s Charlotte, NC and Rhode Island projects. The financial backing from these companies is crucial to the longevity of BLSP’s business model. Also, having these respected companies invest in their business model while in the early development stage displays the conviction that these companies have towards the future of Blue Sphere Corp.
Please review important disclosures on our website at www.seethruequity.com.
About Blue Sphere Corporation
Blue Sphere Corp. (“BLSP”) operates as a clean energy company that develops, acquires, manages and owns waste-to-energy projects. BLSP seeks to provide a cost-effective and environmentally safe alternative to disposing of waste and converting it into energy. The company focuses on developing projects such as waste-to-energy, biogas, and landfill gas projects. Based in Israel, BLSP has ongoing projects in the United States, Italy, Israel, and Ghana.
For further information, please visit the Company’s website: www.bluespherecorporate.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.