Market's view on Genus
Published on April 2024
- A Stock watcher noted concerns about management’s announcements being consistently in contrast to a nearly 20% forecasted profit decline, considering the stock’s 30x price-to-earnings ratio as expensive given the market conditions.
- Another Stock watcher discussed the potential revenue from disease-resistant pigs in the US, estimating an additional $300 million in revenue over five years with high profit margins.
- Speculation about a potential buyout of the business at a significant premium due to its current undervalued state and the opportunity for a private equity firm to capitalize on recent developments.
- Discussion on the significant opportunity posed by disease-resistant pigs, potentially being a transformative solution for costly industry issues.
- Positive sentiment on the company’s long-term prospects globally, highlighting actions by the Chinese government that increased pork prices by 25% and speculations on this being a one-way bet for stock price increase.
- Expectations of share price increase due to undisclosed positive developments speculated to be announced in the first half of the year.
- Approval of new developments expected to lead to substantial cost savings and significant profit increments.
- Impact of surging pork prices in China as reported, influencing stock purchasing strategies.
- Analysis of Peel Hunt’s upgrade of the company’s stock from ‘hold’ to ‘buy’ based on improved performance projections in China and advancements in gene editing expected to commercialize by 2024.
- Discussion about potential news on disease-resistant pigs that could significantly influence the stock market performance.
- Mention of positive market movements due to the ending of lockdowns in Shanghai and related favourable news.
- Reference to the UK’s legislative changes expected to permit gene-edited pigs by the year’s end, highlighting regulatory progress.