Dutton Associates Announces Investment Opinion: Nutrition 21 Raised To Strong Buy Rating In Update Coverage By Dutton Associates
Tuesday May 10, 12:00 pm ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--May 10, 2005--Dutton Associates continues its coverage of Nutrition 21 (NASDAQ:NXXI - News), raising its rating to Strong Buy and maintaining its $1.70 target price. The 10-page report by Dutton senior analyst William R. Prather, R.Ph., M.D. is available at
www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Multex, and other leading financial portals.
We have raised our investment rating on the common stock of Nutrition 21 (N21) from Buy to Strong Buy for the following major reasons: 1) An investment in the Company from reputable, knowledgeable institutional investors which include Midsummer Investment LTD, Cross Atlantic Partners, Uplift Equity Partners and Enable Capital Management LLC., 2) The favorable results of N21's Diachrome® clinical trial that was conducted in collaboration with XL Health, and 3) Current weakness in the share price, which we attribute to general market weakness, the dilutive effect of the Company's recent financing and the announced delay concerning N21's application for Qualified Health Claims surrounding chromium picolinate at the FDA. We believe the current weakness in the price of the stock gives investors a significant opportunity to invest in the Company at favorable valuations. Revenues are expected to accelerate in 2006 to $14.5 million, up from $10.1 million in 2005. The EPS loss in 2006 is forecast to be reduced to $(.07) from the loss of $(.11) forecast in 2005.