BioSolar, Inc. (OTC BB: BSRC) is focused on developing innovative bioplastic solar cell components made from renewable plant sources. The Company’s technology can uniquely reduce manufacturing costs of solar cells. The management also expects considerable cost saving for manufacturers throughout the use of BioSolar’s bio-based plastics in solar cell production.
The Beacon Equity Analyst stated, “Since our initial report, BSRC’s share price has soared 180% to $0.84 and surpassed our price target. In addition the Company has increased its visibility within the investment community and improved trading volume and liquidity. The latest industry trends and Company developments discussed below are reasons we are raising our price target for BioSolar, Inc. to $1.37 and reiterating our Speculative Buy rating.”
In December of last year the company announced that it has successfully completed the scale-up production of high quality biobased plastic film purposed for use as a backing sheet for photovoltaic cells. The CEO commented, “As we continue to hit our targets in our research and development work, we are guided by input from our commercial strategic partners in the photovoltaic field. This successful ramp-up to production scale film width moves us another step closer to commercial sales of our product.”
Solar energy is unique as it offers a clean and effective alternative to energy produced by oil, coal, or natural gas. According to an EPIA/Greenpeace report, the worldwide PV market will grow at a rapid annual rate of 35% through 2009 and then slow to a 26% growth rate between 2010 and 2015. The quickly growing sector is poised to grow 400% from 1.5 Gigawatts in 2005 to no less than 6 Gigawatts in 2010.
In a final evaluation the analyst concluded, “Assuming the most conservative scenario for both solar power deployment and market share gains resulting from BSRC’s lower price for backsheets, we derive a 2008 revenue estimate for the Company of $6.3 million. Applying a 40% premium to the peer group average P/S multiple and multiplying that number by our 2008 revenue estimate, we derive a new price target of $1.37 for BSRC shares.”
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