UPDATE: Roth Capital Starts Kalera AS (KAL) at Buy
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Roth Capital analyst Brian White initiates coverage on Kalera AS (NASDAQ: KAL) with a Buy rating and a price target of $6.00.
The analyst comments "We believe nearterm financing will focus on the credit side with an additional $30 million in farm credit expected plus another $50 million in export credit facilities. We believe Kalera will require an additional $35 million to get its 7 facilities that are scheduled to be running by the end of the year to cash flow break-even. We believe the company will require another $50 million in financing to get its Columbus and Hawaii facilities to break-even cash flow, but the company can delay these facilities until additional funding is available. Our estimates assume a moderation in rollout of new facilities with Columbus and Hawaii delayed in terms of revenue generation until 2024. We believe the company has put the pieces together to be an important player in the industry and while capital market conditions are not ideal, we believe the long-term opportunity in vertical farming will ultimately draw sufficient investor interest to Kalera."
Shares of Kalera AS closed at $4.41 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesRoth Capital, Brian White
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