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UPDATE: Morgan Stanley Starts Local Boutni Corp. (LOCL) at Equalweight

April 20, 2022 3:37 AM EDT
Get Alerts LOCL Hot Sheet
Price: $2.91 -0.34%

Rating Summary:
    3 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - April 20, 2022 6:52 AM EDT)

Morgan Stanley analyst Pamela Kaufman initiates coverage on Local Boutni Corp. (NYSE: LOCL) with a Equalweight rating and a price target of $8.50, highlighting the company's controlled environment agriculture
(CEA). The company focuses on leafy greens, which represents a sizable TAM with ~$10 bn in retail sales in 2021 and a 5% CAGR in 2018-21. The company focuses on leafy greens, which represents a sizable TAM with ~$10 bn in retail sales in 2021 and a 5% CAGR in 2018-21.

The analyst stated "The company currently operates one facility in Hamilton, Montana, but plans to scale to eight greenfield facilities over the next three years, with an estimated cost of ~$40 MM/facility. We forecast attractive 125% revenue growth CAGR in 2022-25, supported by facility expansion, improved crop yields, SKU diversification, and brand investments. As the business scales, we expect LOCL to turn a profit in 2025 and generate gross/EBIT margins of 47.3%/5.8% by 2025."

For an analyst ratings summary and ratings history on Local Boutni Corp. click here. For more ratings news on Local Boutni Corp. click here.

Shares of Local Boutni Corp. closed at $8.28 yesterday.


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