Eden Research PLC (LON:EDEN) is set to enter a period of “strong product sales growth” as it expands into new countries and markets, according to analysts at Cenkos Securities.
In a note initiating the biopesticide firm at ‘buy’, the broker said the company’s underlying market was expected to grow at a “high-teen rate” amid increasing global demand for food, reaching a value of around US$9bn by the early 2020s as opposed to US$5bn currently.
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Combined with a “favourable regulatory market”, particularly in the US, and the recent banning of several chemical pesticides, Cenkos said Eden represented a “relatively unique opportunity to participate in a developing, growth market”.
Cenkos has forecast revenues of £2mln for Eden in the 2019 financial year, rising to £3.6mln in 2020 and then £6.6mln in 2021.
However, analysts said they had forecast the company’s figures “conservatively”, and saw the potential for Eden to deliver 2019 revenues of up to £3.5mln depending on various outcomes including “upfront payments, milestones and sales currently dependent upon regulatory approval”.
In late-afternoon trading on Wednesday, Eden shares were 3% lower at 9.8p.