Speaking to Proactive last week, chief executive Tim Cornelius said that each turbine at MeyGen was capable of generating £100,000 in revenue per month.
Cantor said MeyGen currently has four 1.5 megawatt turbines installed on the site, which implies annual revenue generation potential of £4.8mln per year.
The broker added that Simec Atlantis can also earn additional revenue from offshore maintenance at MeyGen.
Cornelius also explains in the video that the share price had dislocated from the underlying value of the company due to the actions of a small number of price-insensitive sellers who are selling for technical, not fundamental reasons.
Cantor also highlights the valuation attributed to the 220MW Uskmouth, Wales power station conversion project of £123mln.
That assumes a load factor of 76%, plant efficiency of 33% and a fuel cost of £4 /tonne with 50% gearing, assuming a 350bps margin.
First revenues might be in 2020 with construction expected to take up to 18 months.
Also today, Simec Atlantis formalised its joint venture in the stretch of water between France and the Channel Islands.
Normandie Hydrolienne has been established to harness up to two gigawatts (2GW) of power from the Alderney Race, the eight-mile straits that runs between Alderney and La Hague, France, as well as more than 1GW of the resource from adjacent concessions under the control of the States of Alderney.
Its partners are the Development Agency for Normandy (AD Normandy) and the regional investment fund, Normandie Participations.
Shares rose 44% to 16.9p on the back of the news, video and Cantor’s note, but the price is still less than a quarter of the broker’s target.