Cibus assumed with a Buy at Canaccord

Canaccord analyst Austin Moeller assumed coverage of Cibus with a Buy rating and $22 price target. Over the past two years, the agricultural market, particularly in South America, has been adversely impacted by El Nino climate activity, the analyst tells investors in a research note. The firm says a “major stepdown” in commodity pricing for major crops over the past two years has also squeezed asset-rich, cash-poor farmers. However, Ultimately, Canaccord still expects the transition to biological input products and trait-enhanced/genetically edited seeds to be the long-term trend in the agriculture sector despite short-term macro headwinds. It expects both Bioceres and Lavoro to generate stronger returns in 2025 as farmers ramp up planting activity in South America. The firm estimates that Cibus, which has developed three seed traits with three more in its development pipeline, should begin to meaningfully accelerate royalty generation from infusing these traits into customers’ elite germplasm starting in 2027.