H.C. Wainwright Thinks AgroFresh Solutions Inc’s Stock is Going to Recover


H.C. Wainwright analyst Amit Dayal maintained a Buy rating on AgroFresh Solutions Inc (AGFS) today and set a price target of $5. The company’s shares closed yesterday at $1.51, close to its 52-week low of $1.33.

Dayal observed:

“We believe the slightly lower gross margin was due to sales mix shift with growth of the quarter. SG&A expenses of $16.1M were 3.5% higher than $15.6M in 2Q18, mainly because of approximately $2.0M in nonrecurring costs associated with M&A and litigation. Excluding these costs, the company would have shown a 3.7% YoY decline in SG&A expenses. Net loss for the quarter was $22.3M, vs. $18.4M in 2Q18. AgroFresh’s cash and cash equivalents were $35.9M and the company had not drawn any cash from its $12.5M line of credit Key Takeaways. AgroFresh exited the southern hemisphere harvesting season in a healthy manner, making up for a slower first quarter, with 6.0% YoY growth in 1H19.”

According to TipRanks.com, Dayal is a 4-star analyst with an average return of 4.3% and a 45.1% success rate. Dayal covers the Industrial Goods sector, focusing on stocks such as Advanced Emissions Solutions, Inc., Ballard Power Systems, and Orion Energy Systems.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for AgroFresh Solutions Inc with a $5.75 average price target, representing a 280.8% upside. In a report issued on July 30, National Securities Corp also reiterated a Buy rating on the stock with a $5.50 price target.

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The company has a one-year high of $6.87 and a one-year low of $1.33. Currently, AgroFresh Solutions Inc has an average volume of 256.2K.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AGFS in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

AgroFresh Solutions, Inc. engages in the provision of food preservation and waste reduction solutions for fresh produce. It offers products through the following brands: Smarter Freshness, Harvista, LandSpring, SmartFresh, AdvanStore, and ActiMist, Textar, and Teycer. The company was founded on October 24, 2013 and is headquartered in Philadelphia, PA.

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