Make no mistake, Calyxt (CLXT)
still has a long row to hoe. Although this bio-ag has now logged its
first commercial sales in multiple product types, the company is likely
somewhere around five years away from its first profitable quarters and
six or so years away from being free cash flow positive. Moreover, a lot
of the growth I model for Calyxt comes its high-oleic soybean product, a
product category that has attracted plenty of competitive attention,
and there is still a risk that a segment of consumers turn against
gene-edited foods in the way they have against genetically-modified
foods produced from seeds developed by the likes of DowDuPont’s (DWDP) Corteva or Bayer (OTCPK:BAYRY).
Although the shares have rebounded from the time of my last update,
I don’t believe the shares fully reflect the progress and potential of
the company. There have been some pushouts relating to commercial and
development pipelines, but nothing out of the ordinary for a company at
this stage, and there is meaningful upside from here as the company
scales up its HO soy program and advances other projects to the market.
Read the full article:
Calyxt Continues To Make More Progress Than Is Shown In The Share Price
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