Skip to main content

Market Overview

Why Calyxt Stock Is Compelling At Current Levels

Why Calyxt Stock Is Compelling At Current Levels

Shares of Calyxt Inc (NASDAQ: CLXT) gained more than 7 percent Monday after analysts at BMO Capital Markets initiated coverage of the food and agriculture company with a bullish rating. The firm's Kenneth Zaslow slapped an Outperform rating on Calyxt's stock with a $32 price target.

Calyxt is considered to be a best-in-class food company that focuses on gene-editing technologies, the analyst wrote. Calyxt's gene editing technique called TALEN boasts several attributes that overcome shortcomings of traditional genetically modified methods, including:

    1. Not being classified by the USDA's Plant Protection Act as being a regulated article.
    2. A focus on consumer-concentric non-GMO food ingredient products.
    3. A shorter and more cost-effective development cycle.

Compared to other gene editing technologies, Calyxt holds an advantage in three key areas, including:

    1. Greater specificity.
    2. Greater precision and accuracy.
    3. A strong IP exclusivity.

Looking forward to 2018, Calyxt will launch its high oleic (soybean oil) SBO product that could generate peak year revenue of at least $800 million, the analyst said.

See also: Online stock trading

"We are encouraged that management prioritizes R&D over the rapid expansion of high oleic oil, as we expect management to control its high oleic oil expansion and cost structure vs. decreasing its R&D spending, Zaslow wrote.

But there is more to the company's pipeline, including the potential to launch at least four new products over the next 10 years. In the meantime, management continues to exercise financial discipline and the proceeds from its recent initial public offering will support the company's cash needs through 2018 and possibly into 2019.

At publication, shares of Calyxt were up 5.06 percent at $23.61.

Related Links:

Mid-Morning Market Update: Markets Mostly Lower; Lennar To Buy CalAtlantic

8 Stocks To Watch For October 30, 2017

Latest Ratings for CLXT

Dec 2020BerenbergInitiates Coverage OnBuy
Dec 2020HC Wainwright & Co.Initiates Coverage OnBuy
Jul 2020Canaccord GenuityInitiates Coverage OnBuy

View More Analyst Ratings for CLXT
View the Latest Analyst Ratings


Related Articles (CLXT)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Commodities Initiation Markets Analyst Ratings Movers Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at