Sector: Engineering
Research and production association, Saturn, has created a new gas turbine engine for marine applications. This should expand the company's product range and help it enter new markets. Given the state's plans to support the Russian shipbuilding industry, engines of this type are likely to be in strong demand in the next few years, which should enable Saturn to boost sales and increase its profitability.
On August 21, Saturn's press-service released a press-statement that the company had finalized the R&D work on its new marine gas turbine engine. The company should begin official tests on the new engine in the near future.
In our opinion, this news is positive for the company. Saturn is currently the only Russian enterprise involved in the design and production of gas turbine engines for ships. Given the state's plans to support the Russian shipbuilding industry, the demand for marine gas-turbine vessels in Russia should considerably rise in the next few years.
In line with our estimates, the target price of Saturn, as of late 2009, is USD 0.132 per share with a 90% upside, which corresponds to a Buy recommendation. Konstantin Romanov
Other comments of the day
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Saturn
Capitalization: $39 836 576,90
Common shares:
Price: $0,013
Delta week: 0,00%
Delta month: -10,0%
Delta year: -89,2%
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0.569
0.073
