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On Thursday, Canaccord Genuity analysts adjusted their price target for Cibus stock (NASDAQ: CBUS) to $15 from $17.50. The move comes in response to a recent equity raise by the company. Currently trading at $1.57 with a market cap of $81.15 million, the stock has seen a significant decline of 29% in the past week. Despite the lowered price target, the analysts maintained their Buy rating on the stock. According to InvestingPro analysis, the company shows signs of rapid cash burn, with analyst targets ranging from $2 to $25.
The adjustment in the price target reflects the dilution impact due to the revised share count following the capital raise. Canaccord Genuity has also factored in an additional equity raise in its model over the forecast period.
The analysts used a discounted cash flow (DCF) model extending through 2032 to calculate the new price target. The model employs a weighted average cost of capital (WACC) of 20% and a perpetual growth rate of 2%.
The decision to maintain a Buy rating indicates continued confidence in Cibus’s long-term potential, despite the near-term adjustments to the price target.
In other recent news, Cibus Inc has reported a significant increase in revenue for the first quarter of 2025, reaching $1 million, up from $511,000 in the previous year. However, the company also faced a widening net loss of $49.4 million, primarily due to increased SG&A expenses. In an effort to raise capital, Cibus announced a public offering of approximately 15.7 million shares of Class A Common Stock at $1.75 per share, expected to gross around $27.5 million. The offering includes purchases by institutional investors and the company’s Chairman of the Board. Proceeds from this offering will be used to develop weed management productivity traits in rice and for general corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) is acting as the sole placement agent for the offering. Cibus continues to advance its gene-editing platforms, with plans for a 2027 commercial launch for certain products. Despite these developments, the company’s stock has experienced a downturn, attributed to the offering’s steep discount to the market price.
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