NFES management executed a strong growth plan the past three years, as revenue nearly tripled from $5.3 million in 2006 to $15.8 in 2008 (+72.7% CAGR), driven largely by strong sales of innovative flow-control products. Management intends to continue focusing on significant opportunities in these areas, while augmenting this growth with new product entries targeting the rapidly growing wind power markets. The Company has successfully field tested several of its turbine components with prospective customers and is in active discussions regarding production orders.
We are forecasting 2009 sales of $27.7 million and EPS of $0.16 for NFES; for 2010 we expect sales of $40 million and $0.25 EPS, based on expected shipments of existing orders and anticipated order rates for future projects. Better margin wind components are expected to substantially increase the revenue growth trajectory in 2010 with completion of the new automated production facility.
Based on these factors, we are establishing a price target of $2.50, or 10x our 2010 EPS estimate of $0.25 and 2.5x revs/share estimate.