Analyst Ben Klieve from Lake Street reiterated a Hold rating on Yield10 Bioscience (YTEN – Research Report) and decreased the price target to $2.50 from $12.00.
Ben Klieve has given his Hold rating due to a combination of factors surrounding Yield10 Bioscience. Notably, although Yield10’s camelina portfolio is at the forefront of the oilseed cover crop industry, there are uncertainties regarding the company’s financial situation, particularly in terms of securing future financing. The first quarter of 2024 results aligned with estimates, with the company closing the quarter with modest cash reserves, and while additional funds were received from VISION Bioenergy Oilseeds (VBO), the financial outlook remains unclear. Klieve’s caution is further underscored by the recent reverse stock split and the transition from Nasdaq to the OTC Market, which can be seen as a move reflecting financial and operational challenges.
Moreover, while Yield10’s intellectual property (IP) in the biofuel feedstock market is considered valuable, particularly due to a licensing agreement with VBO that shows promise for commercial scalability, there is still a need for a major commercial agreement or strategic investment to fully realize this potential. The company’s focus on developing an omega-3 enhanced camelina for the aquaculture sector has yet to yield significant news or partnerships. In sum, the Hold rating reflects a wait-and-see approach, acknowledging the company’s strong R&D capabilities and market opportunities, but also recognizing the need for a more stable financial footing and successful execution of strategic partnerships.
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Yield10 Bioscience (YTEN) Company Description:
Yield10 Bioscience, Inc. is an agricultural bioscience company, which focuses on the development of technologies to produce step-change improvements in crop yield for food and feed crops to enhance global food security. The company was founded by Anthony J. Sinskey, Simon F. Williams and Oliver P. Peoples in June 1992 and is headquartered in Woburn, MA.
