Vylor (VYLR) will likely see new product and licensing growth which should support 3% to 4% topline growth through 2029 as it launches new wheat and gene editing products, RBC Capital Markets said in a note emailed Friday.
Vylor will likely see solid earnings before interest, taxes, depreciation and amortization and earnings per share growth through 2029, including $1 billion in annual buybacks, and may also see middle double digit EPS growth potential in the 2030 to 2035 period, the note said.
The company has a "unique position as the only pure-play seed business with a robust licensing engine," RBC said.
The company will likely see "high-margin, asset-light" licensing contributions rising to about $1 billion by 2035. "Licensing is a central differentiator of Vylor's model similar to biopharma and biotech and a primary driver for a premium to traditional ag peers," the note said.
The investment firm highlighted that Vylor generates about 2.5 times the peer average peak sales revenue per research and development, or R&D, dollar invested and it "plans to focus ~10% of sales on R&D going forward."
RBC started coverage of Vylor with an outperform rating and $85 price target.
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