DG Innovate (LON:DGI) is the topic of conversation when DirectorsTalk caught up with WH Ireland Analyst Nick Spoliar. We asked:
DG Innovate announced the acquisition of new equipment which it describes as transformative. How do you view this news?
The new motor pilot production line and 3D manufacturing simulation software considerably expand the numbers of Pareta® drives to be delivered (up to 1,000 units per year) as against small numbers currently; the jet mill and furnace will support DGI’s energy storage products. We believe the move to a higher order of production is indeed transformative, since the company will be operating form a materially more significant production platform in the light of the new equipment.
What catalysts do you hope to see over the coming months?
We expect to see further investment on the back of the recent fund-raise, further partnerships and generally an increasingly strengthened business which is now being led by a highly experienced new management team, each of whom has held senior roles within Tesla. We also see further commercial opportunities on the horizon on the back of all of the above.
How do you see DG Innovate in terms of fair value?
We have set a 0.57p fair value target for the present, based on a combination of DCF and risked success weighting.
DG Innovate plc is a research and development company. The Company focuses on sustainable and environmentally considerate improvements in electric vehicle drive and energy storage technologies. Its activities are divided into two areas: Enhanced Drive Technology (EDT) and Enhanced Battery Technology (EBT).
