Cavendish analysts have reiterated their Eden Research PLC (AIM:EDEN, OTCQB:EDNSF) guidance following the sustainable agriculture products developer’s Friday earnings call.
Eden is expected to have a year-end cash balance of £7.8 million with a £2.6 million sales forecast, “which we believe will be supported by the strong commercial progress made throughout the year”.
Cavendish expects near-term events including Mevalone approval in California, and the initiation of Mevalone sales in France by a new distribution partner Corteva France, to support Eden’s investment thesis.
“With expansion of its core product opportunity and a range of new product opportunities set to enter the market in the near term, we believe Eden Research is set to enter a period of strong revenue growth.
“Based upon our revenue growth expectations and declining losses we believe the company will continue to trade on a strong revenue multiple and see upside to the shares from the current level.”
Analysts have set a price target for Eden of 20p, representing a 274% upside against the 5.4p publication price.