Pall Corporation Wins Order – Analyst Blog

Pall Corporation (PLL) has been awarded an order by the National Renewable Energy Laboratory (“NREL”) to develop critical filtration and separation processes for a U.S. Department of Energy advanced biofuels project.

 

Pall will engineer and exhibit the science and the separation technology necessary to enable fungible biomass-based fuels to be incorporated into the existing hydrocarbon fuels infrastructure.

 

The company will be on a technical tie-up for each of six processes for biofuel production being evaluated under the program, which include fermentation, catalytic conversion, catalytic fast pyrolysis, hydropyrolysis, hydrothermal liquefaction, and syngas-to-distillates process.

 

The end result will be at least one pilot-ready process, design reports, and life cycle analysis demonstrating economics and environmental benefit. The value of the project is $46 million and it will be co-led by NREL and the Pacific Northwest National Laboratory (“PNNL”).

 

Pall enjoys above-average financial returns and reasonable growth prospects because of a highly-engineered technology, reliable global distribution, high shares in markets, long and close working histories with customers, few competitors and solid product quality supplemented by technical service.

 

Pall is considered to be the largest player in the filtration/separation industry based on its revenue and market share of approximately 7%. In the long run, Pall will likely benefit from several secular trends such as global infrastructure growth, increasing demand for water filtration systems and continued steady growth in medical and pharmaceutical markets.

 

Several industrial markets showed resilience, and life science markets, medical and biopharmaceuticals still grew for the full year. The US market is largely driven by EPA regulations, with stimulus money a potential new growth driver that appears to be just now impacting its quoting activity.

 

Pall Corporation manufactures and markets filtration, purification and separation products and integrated systems solutions worldwide.

 

We currently have a “Neutral” recommendation on PLL.