H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Marrone Bio (MBII) today and set a price target of $2.50. The company’s shares closed yesterday at $1.45.
Dayal noted:
“We are lowering our price target on MBII to $2.50, from $3.50 previously, driven by: (1) effect of salesforce attrition, experienced earlier in 2018, that has continued to negatively impact the pace of topline revenue growth; (2) slower than expected regulatory approval process for the company’s bioinsecticides, biofubgicides, and biopesticides.; and (3) longer than expected sales cycles. We are now taking a slightly more conservative stance on our forward projections for MBII, resulting in the lowered price target. Please see the valuation section of this note for more details. 3Q18 results overview. 2018, MBII reported revenues of $5.4M for the quarter (28.6% YoY increase). Gross margins were 48.3% for the quarter, compared to 40.9% in the year ago period.”
According to TipRanks.com, Dayal has currently no stars on a ranking scale of 0-5 stars, with an average return of -9.1% and a 32.2% success rate. Dayal covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Capstone Turbine Corp, and Orion Energy Systems.
Marrone Bio has an analyst consensus of Moderate Buy, with a price target consensus of $2.50.
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Based on Marrone Bio’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $4.84 million. In comparison, last year the company had a GAAP net loss of $8.53 million.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is neutral on the stock.
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Marrone Bio Innovations, Inc. engages in the provision of bio-based pest management and plant health products for the agricultural and water treatment markets. Its brand includes regalia, bio-tam, grandevo, venerate, and majestene. The company was founded by Pamela G. Marrone on June 15, 2006 and is headquartered in Davis, CA.
