bullish

Rubicon Ltd

ArborGen Holdings - Green shoots appear in the spring

183 Views24 Jul 2023 19:12
Issuer-paid
SUMMARY

We believe ArborGen Holdings is in prime position, not only to address increasing demands from clients for its seedlings, but also for its ongoing investment in genetic improvement to continue to drive the switch to sales of higher-value, higher-margin seedlings to all its key markets. While this process plays out, underlying EBIT is set to increase five-fold in the next two years as gross margins return to and then exceed historical levels. We determine a value of NZ$0.49/share, implying attractive upside.

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