Jennings Capital Initiates Coverage on ZCL Composites with Buy Recommendation - Video Research Alert on

Vancouver, British Columbia--(Newsfile Corp. - January 16, 2014) - Investment firm Jennings Capital has initiated coverage on ZCL Composites (TSX: ZCL). Analyst Russell Stanley gives the company a buy recommendation and a 12-month target price of $9.00, a premium of 21% to the $7.44 price when the report was issued on January 6th. has produced a "video research alert" about ZCL Composites based on this report. If this link is not enabled, please visit and enter "ZCL" in the search box.

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ZCL Composites is North America's largest manufacturer and supplier of environmentally friendly fibreglass reinforced plastic underground storage tanks. The company also manufactures custom engineered aboveground fibreglass reinforced plastic and dual-laminate composite storage tanks, piping and lining systems, and related products. They have a dominant position in the downstream petroleum market for underground storage tanks.

There is an ongoing replacement demand driven by the aging of approximately 650,000 underground storage tanks used in service stations in the United States and Canada of which ZCL has a 85%+ share of the Canadian, and 40%+ share of the U.S. retail service station market. This has been the company's traditional core business, and Jennings Capital expects additional demand growth from replacement of older steel and fibreglass tanks, as well as further adoption of renewable fuels such as ethanol.

Analyst Russell Stanley stated, "Through a combination of process improvements, customer mix changes and scale economies, management has improved gross margins from a low of 10% in F2010 to 18% in F2012, and to over 22% on a year to date basis."

ZCL Composites' shares currently trade at $7.48, a discount to the $9.00 target price, and with 29.6 million shares outstanding, the company is capitalized at $221.4 million.

For more information please visit the company's website at or contact Ron Bachmeier, President & CEO at 780-466-6648 or email

For more information about Jennings Capital or to obtain a copy of their research report, contact your nearest Jennings Capital office. Their branches are listed on their website at

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