yuck - Stock: Farmers Edge (Farmers Edge Stock Quote, Charts, News, Analysts, Financials TSX:FDGE)
Rating: Sector Perform
Year-to-date return: -84 per cent
Target Price: $0.50 (previously $1.00)
Projected 12-month return: -7 per cent
High inflation for key agricultural inputs are a concern with Farmers Edge, says Tse, and while the company’s carbon offsets business could be a potential opportunity, the analyst said it’s too early to price that into the stock. Plus, there’s risk to FDGE in light of cash challenges, Tse argued.
“With the entire C-level Management team departing the company since its IPO, it’s further challenged by the Company’s cash position with ~$9.0 million in cash under an expected burn rate of ~$60.8 million over the next 12 months,” he said.