MustGrow Biologics Corp has earned a repeat ‘Market Perform’ rating from Noble analysts after the company announced it is pursuing sustainable agriculture opportunities in the soil amendment and biofertility markets.
The new programs will focus on soil and soil microbiome health, nutrient and water use efficiencies, and plant yields, the company said on Tuesday.
Its new product TerraSante contains nutritious plant proteins and carbohydrates that feed soil microbes, potentially improving beneficial microbial activity and ensuring long-term sustainable soil health.
MustGrow is pursuing TerraSante branded registrations in North America for soil amendment applications, followed by formulations and brands targeting the biofertility markets.
Noble’s analysts wrote in a note to clients that the announcement expands MustGrow’s total addressable market. The soil amendment market is estimated at $3.5 billion, growing to $8 billion by 2030, while the biofertility market is estimated at $2.7 billion, growing to $7 billion by 2030, they wrote.
“Combined, these additional market segments add over $15 billion of target market opportunity globally for MustGrow by 2030, almost double from the initially targeted biocontrol market.”
On their ‘Market Perform’ rating, the analysts said they believe a substantial opportunity exists for natural alternatives in the company’s targeted end markets, such as preplant soil fumigation, bioherbicides, postharvest food preservation, and, now, soil amendment and biofertility.
“However, MustGrow remains in the pre-revenue stage and is dependent upon its partners to conduct the field trials,” they noted.
“We would look to upgrade to an ‘Outperform’ based on additional favorable trial outcomes and/or movement on the regulatory front.”
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