ArborGen Holdings - Key US market unaffected by COVID-19 thus far

ArborGen’s US sales appear to have fared well in H220 as management has reaffirmed guidance for FY20. While we are aware of COVID-19 risks – which will continue to be monitored – the seasonal H2 bias to dominant US sales along with current customer planting intentions suggest no reason to change the FY21 outlook for now. Consequently, our estimates are unchanged and show good year-on-year progress for both FY20 and FY21, generating low earnings multiples at the current share price.