Canaccord Genuity analyst Robert Burleson maintained a Buy rating on Bioceres Crop Solutions (BIOX – Research Report) yesterday and set a price target of $18.00.
Robert Burleson has given his Buy rating due to a combination of factors including Bioceres Crop Solutions’ robust growth forecast and the introduction of fiscal year 2025 estimates. Despite facing temporary challenges such as a difficult comparison with a previous Syngenta payment and slower demand in certain markets, the company’s adjusted EBITDA projections remain unchanged at $90M for fiscal year 2024. Furthermore, promising growth prospects for the following year are anticipated, with expectations of approximately 20% year-over-year EBITDA growth, underpinned by a return to normal demand conditions and the introduction of new products. Burleson maintains an $18 price target for the stock, based on a valuation of roughly 8.3 times the enterprise value to EBITDA for the estimated fiscal year 2025.
Additionally, the report indicates that while there were setbacks in revenue and EBITDA in the third quarter, these were partly due to exceptional contributions from the prior year’s comparable quarter. The company still achieved growth in its Crop Protection segment and a significant increase in its Seed and Integrated Products segment, driven by HB4 sales. Despite a decline in Crop Nutrition, product growth was positive when excluding the impact of timing on Syngenta payments. Burleson also highlights the strategic advancements in Brazil, such as the approval of new biocontrol solutions and progress with HB4, which are expected to contribute to the company’s future growth despite some near-term demand softness. These factors contribute to the analyst’s positive outlook and Buy rating for Bioceres Crop Solutions.
In another report released yesterday, Lake Street also assigned a Buy rating to the stock with a $25.00 price target.
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Bioceres Crop Solutions (BIOX) Company Description:
Union Acquisition Corp. is a blank check company, which engages in the provision of merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or other similar business combination with one or more businesses. The company was founded on November 14, 2017 and is headquartered in New York, NY.
