H.C. Wainwright analyst Kevin Dede has reiterated their neutral stance on AQB stock, giving a Hold rating yesterday.
Kevin Dede has given his Hold rating due to a combination of factors related to AquaBounty Technologies’ recent developments and financial situation. The company’s decision to sell its Indiana farm has led to a significant shift in its operational strategy, primarily relying on egg sales for future revenue. Although AquaBounty has seen some positive developments at its Prince Edward Island (PEI) farm, the company’s sales have decreased, and the progress on securing partnerships or funding to complete its Pioneer, Ohio, facility remains unclear. Dede’s caution is further underscored by the accelerated harvest at the Indiana farm, which resulted in selling fish mostly below market weight and, therefore, at reduced values.
Furthermore, the company’s total assets have declined, and a bridge loan was necessary to address immediate liquidity issues. These financial challenges, combined with lowered revenue estimates due to the Indiana farm no longer contributing, have led to a more conservative outlook. Dede remains neutral, acknowledging the company’s potential in a robust salmon market but expressing concern over the significant funding requirements for the Ohio facility and the uncertainty around financing. The risks associated with investment in AquaBounty, such as disease infestation, capital sufficiency, market pricing trends, and acceptance of genetically modified fish, further justify the Hold rating.
According to TipRanks, Dede is an analyst with an average return of -5.1% and a 34.88% success rate. Dede covers the Technology sector, focusing on stocks such as Kopin, Sphere 3D, and AquaBounty Technologies.
In another report released yesterday, Lake Street also assigned a Hold rating to the stock with a $3.00 price target.
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AquaBounty Technologies (AQB) Company Description:
AquaBounty Technologies, Inc. is a biotechnology company, which focuses on the enhancement and improvement of the productivity in commercial aquaculture. It uses genetic manipulation and other molecular biologic techniques in order to improve the quality and yield of fish stocks. The company was founded by Elliot Z. Entis and Garth L. Fletcher on December 17, 1991 and is headquartered in Maynard, MA.
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