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Investing.com - Canaccord Genuity downgraded Bioceres Crop Solutions (NASDAQ:BIOX) stock rating from Buy to Hold and slashed its price target to $2.50 from $6.50 following disappointing fourth-quarter results. The stock, currently trading at $2.24, has fallen over 74% in the past year and is trading near its 52-week low of $1.97. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
The agricultural technology company reported quarterly revenue of $74.7 million, representing a 40% year-over-year decline, while posting an adjusted EBITDA loss of $4.5 million, down 123% compared to the same period last year. Despite these challenges, InvestingPro data shows the company maintains impressive gross profit margins of 39% and a healthy current ratio of 1.02. Discover 15+ additional exclusive insights and detailed financial metrics with InvestingPro’s comprehensive research report.
Both sales and adjusted EBITDA came in significantly below Canaccord’s estimates, with revenue approximately 32% lower and EBITDA loss about 125% worse than projected, despite these forecasts already being at the low end of consensus.
Canaccord attributed the weak performance to multiple macroeconomic challenges affecting agricultural customers in Argentina, Bioceres’ core market, including tougher year-over-year comparisons, weaker on-farm economics due to lower commodity prices, and persistent tight financing for farmers in the region.
The revenue decline stemmed from reduced demand for Crop Protection and Crop Nutrition solutions in Argentina, lower HB4-related sales following the company’s transition to a licensing-based business model, and the absence of a $15.7 million non-recurring payment from Syngenta that had boosted the previous year’s results.
In other recent news, Bioceres Crop Solutions reported its Q4 2025 earnings, revealing a significant decline in revenue. The company posted quarterly revenues of $74.7 million, marking a 40% decrease from the previous year and falling short of the forecasted $111.68 million. This shortfall in revenue also led to a failure to meet the earnings per share forecast. Oppenheimer has responded to this weak quarterly performance by lowering its price target for Bioceres Crop Solutions from $6.00 to $5.00, though it maintained an Outperform rating. The company has faced several challenges, including a debt restructuring and the departure of its CFO. Additionally, a weak Argentine crop year has negatively impacted the company’s results. These developments have contributed to a cautious outlook from investors and analysts alike.
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