Marrone Bio Innovations, Inc. (NASDAQ:MBII), a developer of bio-based pest management and plant health products for agriculture, turf, water treatment and cannabis markets, released new results of field trials in Brazil that show its products are matching or beating chemical-based pesticides in key crops for pesticide use.
“Our biological pesticides yielded excellent results in recent field trials in Brazil. This is an important target market for our products due to bioinsecticides’ high market share and the urgent need for effective pest control solutions,” said Pam Marrone, MBI’s Chief Executive Officer. “I anticipate a clear path to completion of the registration process in Brazil, as the country’s teams of biopesticide regulators review the positive trial results. We look forward to expanding into Brazil and helping growers tackle a wide range of unmet challenges.”
As we covered back in June, Marrone Bio Innovations also develops products suitable for cannabis cultivators. While pest management is an important aspect of farming crops like corn and soybeans, it is just as important for marijuana. Since cannabis is often burned or vaporized and then inhaled, using a bio-based pest management solution is far superior to using a chemical-based pesticide.
With substantial short interest in shares of MBII, and an analyst average price target of $2.75, there is potentially over 157% upside in the stock. Piper Jaffray's Brett Wong currently has a 'Hold' rating on MBII, with a price target of $2.00 per share, while H.C. Wainwright's Amit Dayal has a 'Buy' rating on MBII with a price target of $3.50 per share. An older analyst update from 5 months ago (not included in our average analyst PT) shows that Jefferies' Laurence Alexander assigned a 'Hold' rating on MBII with a price target of $2.50.