In a recently released analyst research report, H.C. Wainwright Senior Technology Analyst Amit Dayal reiterated their buy rating on shares of Marrone Bio Innovations Inc. (NASDAQ:MBII) with a price target that suggests some noteworthy upside to come.
The same as it was in May, Amit Dayal’s MBII price target of $2.50 USD per share implies a potential upside of approximately 90.84% based on the last traded price of $1.31 USD per share on the NASDAQ.
Just a few days ago, it was announced that Marrone Bio Innovations is purchasing ProFarm, an agriculture technology company in a deal worth $31.8 million amid rising revenues. According to The Sacramento Bee, ProFarm “specializes in technology meant to promote crop growth.”
According to Dayals note to clients, “We have not yet incorporated the effect of the financing and the proposed acquisition in our model. If, and when, the transaction closes, we believe that the company’s revenues for 2019 should be expected to be higher, relative to our current expectation, by single-digit millions. Currently, we are projecting MBII to generate revenues of $30.3M in 2019. We expect revenues to reach $160.7M in 2025, growing at a six-year CAGR of 32.0%, relative to 2019 levels. We are estimating gross margin to stay at 55-56% level for the next several years.”
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