Local Bounti Corporation: Poised for Robust Growth and EBITDA Positivity

Analyst Ben Klieve of Lake Street reiterated a Buy rating on Local Bounti Corporation (LOCL – Research Report), retaining the price target of $10.00.

Ben Klieve’s rating is based on a number of key observations which suggest a strong potential for Local Bounti Corporation’s growth and profitability. Klieve notes that Local Bounti has recently demonstrated significant improvements in EBITDA, exceeding expectations and indicating a robust commercial ramp-up with the initiation of three new commercial-scale facilities. This development is seen as pivotal for the company as it solidifies its value proposition, showcasing effective facility-level economics and a clear trajectory towards EBITDA positivity by the first half of 2025. Klieve expects this progress to be a catalyst for a reassessment of the company’s valuation.

Furthermore, Klieve believes that Local Bounti’s strategic management of operational expenses and the anticipated increase in production capacity will lead to consistent improvements in revenue, gross profit, and EBITDA throughout 2024. The company’s balance sheet is expected to strengthen with potential new capital avenues and debt funding, improving its financial position and increasing value for shareholders. As Local Bounti’s innovative hybrid facility design begins to demonstrate its economic advantages at scale, Klieve sees a compelling investment opportunity, with the stock having the potential to offer significant returns as these developments unfold.

Klieve covers the Consumer Defensive sector, focusing on stocks such as Vital Farms, MGP Ingredients, and Calavo Growers. According to TipRanks, Klieve has an average return of 7.1% and a 46.29% success rate on recommended stocks.

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Local Bounti Corporation (LOCL) Company Description:

Leo Holdings III Corp is a blank check company.