BIOX stock is a buy, Roth says

Crop productively is a big story and if you want exposure to it, the play is Bioceres Crop Solutions (Bioceres Crop Solutions Stock Quote, Chart, News, Analysts, Financials NASDAQ:BIOX).

So says Roth MKM analyst Scott Fortune, who is a research update to clients July 2 resumed coverage of BIOX with a “Buy” rating and price target of $15.00.

“We are resuming coverage of BIOX with a Buy rating and a $15 PT,” the analyst wrote. “BIOX is well positioned with its comprehensive biological crop protection and nutrition portfolio and proprietary HB4 drought-resistant seed platform to address secular sustainability trends to reduce conventional inputs. We expect a continuation of mid-teens organic growth and expanding AEBITDA margins to 25%, driven by ramping HB4 acreage and ongoing penetration into the large Brazilian agriculture market. Additional biological regulatory approvals, scale, and geographic expansion will drive market share and higher margins.”

Fortune thinks BIOX will post EBITDA of $87.7-million on revenue of $469.5-million in fiscal 2024. He expects those numbers to improve to EBITDA of $104.4-million on a topline of $525.1-million the following year.

The analyst says BIOX’s is a sustainable business trading attractive levels.

“With a history of developing and commercializing ag biologicals and proprietary seed products, bolstered by acquisitions, we believe above industry average growth is sustainable for BIOX. The company’s attractive crop productivity franchise and new geographic growth opportunities should garner a modest premium to peers. BIOX shares trade at a 1.2 multiple point discount (8.8x vs. 10.0x CY25 EV/AEBITDA) to large cap peer Corteva (CTVA — Under Review) despite a double-digit top-line growth profile compared to a mid-single-digit revenue growth at its larger peer. Given its unique market position, growth outlook, and profitability, we resume coverage with a Buy rating. Our $15 PT is based on a
11x EV/AEBITDA multiple on our CY25 estimates.”