NEW YORK, NY / ACCESSWIRE / June 22, 2017 / JGR Capital Partners, a leading equity research firm, has announced it has initiated coverage on Arkados Group, Inc. (OTC PINK: AKDS) with a base case financial valuation of $1.13 per share.
The full report can be found here: AKDS Initiation.
Arkados Group, Inc., through its subsidiaries, is a global provider of scalable and interoperable Industrial Internet of Things (IoT) solutions that help customers increase efficiency and reduce cost. The company offers cutting-edge solutions, focused on industrial automation and energy management, comprised of our software and hardware platforms that enable advanced machine to machine communication.
Key Report Highlights:
Strategic business synergies provide comprehensive energy management. According to the US Environmental Protection Agency estimates, American businesses can reduce on average 30% of their energy use by correcting physical inefficiencies in the areas of lighting, boiler and combined heat and power systems, and industrial machinery. AES benefits the businesses overseeing physical retrofitting of buildings to upgrade the energy assets, implementing the most energy- and cost-efficient solutions in lighting, heating, power, and other industrial machinery. Simultaneously, Arkados software helps to further improve efficiencies through innovative energy management, controlling, and monitoring of these assets. Arkados software technology enables smart monitoring of devices, energy management, and intelligent control through cloud services (IoT), which is ideal for Smart Manufacturing, Smart Building, and Smart Machine operations.
Green building initiatives bode well for Arkados. According to a Forbes study, commercial building owners and managers will invest an estimated $960bn globally between now and 2023 on green building in areas including energy-efficient heating, ventilation and air conditioning, windows, lighting, plumbing fixtures, and other key technologies. Arkados is well positioned to benefit from huge market demand for energy efficient and environmental friendly buildings, given its unique business synergies being a software developer as well as system integrator.
The company is a viable acquisition target. With its well-crafted business divisions and strategic positioning within the growing energy conservation and IoT industries, Arkados also emerges as a lucrative acquisition target. On one hand, it offers energy conservation technology as well as a deeper collaboration through IoT software for energy services companies; on the other hand, it offers its energy connections to monetize IoT software business for IoT solution companies. Moreover, Arkados can prove to be a value addition for the service divisions of companies involved in designing, manufacturing and selling of energy and related equipment. The acquisition market is hot for such businesses; GE-backed Current acquired networked building firm Daintree Networks for $77mn last year. For any large company, Arkados is an attractive buy being a small company that provides significant value in its unique business strategy, strong IP, growing client base, and strategic partnerships, in addition to having an experienced management team.
SolBright acquisition brings synergies and open up further synergistic opportunities. In May 2017, the Company completed its acquisition of SolBright Renewable Energy, LLC, a leading designer and developer of Solar Energy systems for $15mn. This transaction bodes well for Arkados' growth story, allowing it to expand its AES business, which has similar offerings, into the rapidly growing renewables energy industry. SolBright's $40mn in distributed generation EPC projects backlog and growing pipeline will not only add to Arkados' future revenues, but also open up customer expansion opportunities for its IoT solutions.
JGR Capital Partners LLC is being compensated by the Arkados for producing research materials regarding Arkados and its securities. Payment is made in cash and is billed annually. As of 06/16/2017 the issuer had paid us $10,000 for its services, which commenced June 2017. Additional fees may have accrued since then. Disclosures pertaining to this report can be found at www.jgrcapitalpartners.com.
About Arkados Group, Inc.:
Arkados' core strengths lie in our world-class expertise in software design and system integration, our experienced management team, our strong intellectual property portfolio, our flexible, scalable approach, our multi-national partnerships, our direct access to top-tier customers, as well as valuable channel and OEM partners, and unwavering commitment to collaboration and to doing more with less.More information on Arkados Group can be found at arkadosgroup.com.
About JGR Capital Partners:
JGR Capital Partners is an international equity research and digital investor relations firm that focuses on companies under $2 billion in market capitalization. The firm is headquartered in New York City, with affiliate offices in Los Angeles, Sao Paulo, and Shanghai. Our team of experienced analysts form investment theses based on company and sector expertise, with a strict focus on fundamentals and valuation. For more information on JGR Capital Partner's, visit our website at www.jgrcapitalpartners.com.
SOURCE: JGR Capital Partners