Pioneer agreement boosts S&W Seed to B. Riley FBR Alpha Generator List
Jun. 10, 2019 12:59 PM ET|About: S&W Seed Company (SANW)|By: Carl Surran, SA News Editor
S&W Seed ( SANW +2.8%) is added to the Alpha Generator list at B. Riley FBR with a $4.80 price target, raised from $3.50, saying the recently announced Pioneer agreement strengthens its balance sheet.
SANW is expected to receive ~$70M in cash payments, including $45M at closing in Q4 2019 and $25M for seed inventory through February 2021, for a total value of ~$2.10/share, vs. SANW's current stock price of $2.69/share, the firm explains.
B. Riley believes SANW has a valuable middle-market seed platform that is well positioned to gain share in alfalfa, sorghum and sunflower crops, and says the Pioneer deal significantly strengthens SANW's financial position, providing management with the flexibility to accelerate growth via M&A, an important component of management's transformation plan.
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There were a lot of insider option that vest at $3.25/share on last stock offering so it will need to trade thru that level. Income from that Pioneer agreement is for 3 years and I believe not fully priced into the stock.
EKS |
