National Securities Reaffirms “Buy” Rating for Marrone Bio Innovations (MBII)

Marrone Bio Innovations (NASDAQ:MBII)‘s stock had its “buy” rating reaffirmed by equities researchers at National Securities in a research report issued to clients and investors on Thursday. They presently have a $2.50 target price on the basic materials company’s stock. National Securities’ price target points to a potential upside of 67.79% from the company’s previous close.

The analysts wrote, “▪ Growth Set To Accelerate – Macro tailwinds and internal developments are aligning such that we believe growth will make a meaningful step up in 2019 and into 2020. The nearly 30% revenue growth seen in the third quarter of 2018 represents what we believe to be the beginning of a trend, as we are modeling revenue to double from 2018 to 2020.

▪ Seed Treatment Business A Significant Near-Term Driver – A distribution agreement with Albaugh is ramping towards an expected $8 to $10 million run rate in 2020, representing the largest driver of growth over the next two years. Efforts are underway to expand the business beyond these levels, and we believe there is a meaningful opportunity both with additional microbes at Albaugh or with additional distributors.

▪ Cannabis Applications Taking Off – Venerate’s approval for cannabis grown in California last week represents the latest in a string of approvals in key states over the past year. While adoption of any inputs takes time after approval is granted, we anticipate cannabis being one of the key growth drivers in both the near and long term.

▪ Broad Product Suite Coming Online At The Right Time – With several products launching recently, MBII is expanding its offerings while the agriculture industry is becoming increasingly aware of the potential for biologicals. As such, we expect revenue growth to come from both an expanding market and an increase in market share.

▪ Positioning And Growth Outlook Unique Within Agriculture Industry – We believe MBII possesses one of the most compelling positions of small cap investments within the agriculture industry given its pure play focus on the high growth biological space.”

Several other equities research analysts have also recently weighed in on the stock. Zacks Investment Research cut shares of Marrone Bio Innovations from a “hold” rating to a “sell” rating in a research note on Thursday, November 29th. HC Wainwright set a $3.00 target price on shares of Marrone Bio Innovations and gave the company a “buy” rating in a research note on Wednesday, November 14th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average price target of $2.26.

NASDAQ MBII opened at $1.49 on Thursday. The company has a debt-to-equity ratio of 1.06, a current ratio of 3.42 and a quick ratio of 2.52. Marrone Bio Innovations has a twelve month low of $1.07 and a twelve month high of $3.39. The stock has a market capitalization of $164.93 million, a P/E ratio of -1.39 and a beta of -0.21.

Marrone Bio Innovations (NASDAQ:MBII) last released its earnings results on Tuesday, November 13th. The basic materials company reported ($0.04) earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of ($0.04). Marrone Bio Innovations had a negative net margin of 105.87% and a negative return on equity of 2,570.84%. The business had revenue of $5.43 million during the quarter, compared to analysts’ expectations of $7.17 million. As a group, sell-side analysts anticipate that Marrone Bio Innovations will post -0.17 earnings per share for the current year.

Institutional investors have recently modified their holdings of the stock. Rhumbline Advisers increased its holdings in shares of Marrone Bio Innovations by 44.3% in the fourth quarter. Rhumbline Advisers now owns 68,021 shares of the basic materials company’s stock valued at $100,000 after purchasing an additional 20,882 shares in the last quarter. Schwab Charles Investment Management Inc. acquired a new stake in Marrone Bio Innovations during the 2nd quarter worth $188,000. Bank of New York Mellon Corp acquired a new stake in Marrone Bio Innovations during the 2nd quarter worth $214,000. Geode Capital Management LLC grew its holdings in Marrone Bio Innovations by 5.8% during the 4th quarter. Geode Capital Management LLC now owns 443,611 shares of the basic materials company’s stock worth $652,000 after acquiring an additional 24,460 shares during the period. Finally, Northern Trust Corp grew its holdings in Marrone Bio Innovations by 1,503.9% during the 2nd quarter. Northern Trust Corp now owns 512,232 shares of the basic materials company’s stock worth $943,000 after acquiring an additional 480,296 shares during the period. 41.88% of the stock is owned by institutional investors and hedge funds.

About Marrone Bio Innovations

Marrone Bio Innovations, Inc provides bio-based pest management and plant health products primarily for agricultural and water markets in the United States and internationally. It offers herbicides; fungicides; nematicides; insecticides; algaecides for algae control; molluscicides for mussel and snail control; plant growth and stress regulators; and water treatment products for various applications, such as hydroelectric and thermoelectric power generation, industrial applications, drinking water, aquaculture, irrigation, and recreation.

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