Local Bounti price target lowered to $3.50 from $10 at Lake Street

Lake Street lowered the firm’s price target on Local Bounti to $3.50 from $10 and keeps a Buy rating on the shares. Q4 results were in line with the firm’s expectations, but shares rallied 47% based on a significant increase in capital availability via a $110M expansion of its credit facility with Cargill, a $35M sale/leaseback deal and potentially up to $80M of USDA-backed financing. The firm view this as "transformational capital for the company" and "a testament to the value being built by Local Bounti," which it views as materially overlooked even after yesterday’s rally. The firm lower its price target given market conditions and dilution, but calls the capital structure news "perhaps the most significant development in Local Bounti’s public company history."