TSX:FDGE - Post Discussion
Post by
Possibleidiot01 on Aug 17, 2022 1:31pm
Just RUN and keep RUNNING
CIBC’s Jacob Bout cut his Farmers Edge Inc. (
) target to $1, below the $2.31 average, from $3 with a “neutral” rating, while Canaccord Genuity’s Doug Taylor lowered his target to $1 from $2.50 with a “hold” rating.
“We continue to rate the stock a HOLD and recommend investors look for value elsewhere,” said Mr. Taylor. “With new CEO Vibhore Arora at the helm, the company detailed a revised strategy including, most notably, the elimination of the ‘free-trial’ programs which have failed to consistently translate into paying subs. Forthright discussions of the business on the company’s earnings call reaffirmed expectations are now reset. With that said, the story continues to be challenged by elevated cash burn ($26.3-million in Q2) and dwindling balance sheet resources. The company had $9.0-million in cash and $75-million in available credit facility ($10-million drawn since July 15 close). The resulting risk of dilution or other negative balance sheet events obscures the ability to discount the revised growth profile.”
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