Lake Street analyst Ben Klieve reiterated a Buy rating on Local Bounti Corporation (LOCL – Research Report) today and set a price target of $10.00.
Ben Klieve’s Buy rating for Local Bounti Corporation is based on a number of considerations. The company’s Q3 2023 results were slightly below expectations, but Klieve has identified a promising trend in the form of greenfield locations that are set to complete in the coming quarters. These sites are expected to bring Local Bounti to EBITDA profitability by the end of 2024. In addition, the company has secured conditional debt financing of $228M, which is expected to further fuel expansion and the company’s value is expected to be revealed as its expanded capacity comes online.
Furthermore, Klieve perceives the company’s 2024 ramp to be on track, with the GA greenfield expansion completed and future sites in TX and WA expected to be finished in the coming quarters. These expansions are projected to bring the company to profitability on an EBITDA basis. Klieve also noted the company’s access to capital through a conditional commitment from a commercial finance lender for financing up to $228M, which he believes could comfortably drive Local Bounti to $100M+ of EBITDA. Lastly, Klieve highlighted Local Bounti’s unique design and capital access in the challenging CEA sector, and its potential to deliver considerable returns for patient capital as greenfield locations shift from construction to production.
In another report released on October 20, Oppenheimer also maintained a Buy rating on the stock with a $12.00 price target.
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Local Bounti Corporation (LOCL) Company Description:
Leo Holdings III Corp is a blank check company.
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