Analyst Austin Moeller of Canaccord Genuity maintained a Buy rating on Cibus (CBUS – Research Report), retaining the price target of $15.00.
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Austin Moeller has given his Buy rating due to a combination of factors that highlight Cibus’s strategic advancements and potential market impact. The recent approval from the US FDA for Cibus’s altered lignin alfalfa trait is a significant milestone, as it allows the company to commercialize a gene-edited plant that offers enhanced digestibility for livestock and improved harvest timing for farmers. This development not only opens up new revenue streams but also positions Cibus as a pioneer in the gene-edited alfalfa market, in collaboration with S&W Seed Company.
Austin Moeller’s rating also considers the broader implications of this approval for Cibus’s product pipeline. While the immediate revenue from the alfalfa trait might be modest compared to other projects, such as the herbicide tolerance traits in rice, the successful FDA consultation boosts investor confidence in Cibus’s ability to bring innovative agricultural solutions to market. This confidence is further supported by the potential for significant licensing royalties, which could enhance Cibus’s financial performance and support its growth trajectory in the agricultural biotechnology sector.