Morgans: Redflow consumer offering to open the door

Morgans, June, 16

Equity researchJune 7, 2016

We reinstate coverage of RFX following its recent capital raising. We expect RFX to end FY16 with ~A$12.5m of net cash and sales ramping up.

  •  After many years of trials, RFX recently received its first small commercial orders from a variety of system integrators. We expect sales to accelerate as commercial orders generate revenue and cash.
  • RFX now fully outsources contract manufacturing to global giant Flextronics, has a Battery Management System for ease of installation and use, and is generating small commercial sales, which places RFX one step closer to success, in our view.
  • That said, after a stellar share price performance, RFX is now trading in-line with our price target so we move to a Hold recommendation.

Please click here to read the full analyst research update.

Download Now