Broker: Canaccord Genuity
Share price: 62.5p
Target price: 80p
Nanoco has announced a joint development agreement with an unnamed Asian electronics group for work on quantum dots for displays.
Nanoco produces cadmium-free quantum dots used in LED-backlit TV displays, general lighting, solar and medical sectors. Nanoco already has too Japanese customers in the display sector and it appears the latest partner is more likely to be based in South Korea.
The initial deal may be small but it helps to lend further credibility to its product quality and patent strength.
Canaccord Genuity forecasts breakeven in the year to July 2013 and a profit of £7.9 million the following year.
Any more of these positive announcements and the target price of 80p might appear too cautious.