A very simple note out from CAP-XX (LON:CPX), the supercapacitors group, that it has been awarded and received a A$2.05m tax rebate from the Australian Tax Office encouraged its brokers to put out a new Buy note.
The company develops, manufactures and markets supercapacitors and energy management systems for small scale electronic devices and automotive applications.
Its systems, which are manufactured in Australia, Malaysia and in China, are researched and developed in Australia, hence the Tax Rebate being sought and gained.
Cenkos Securities, joint brokers to the group, have concluded that:
“With a growing product portfolio, and upside left in a number of areas such as litigation and new licensees, we continue to believe CAP-XX is significantly undervalued and iterate our Buy recommendation and 14p DCF based valuation.”
The group’s shares are currently trading at only 3.75p.