Driven by strong sales growth for its Pooph pet odor control product line, small-capannounced preliminary 2023 revenues have doubled over 2022 levels for the second consecutive year, reported Oak Ridge analyst Richard Ryan in a January 29 research note.
Ryan believes these results support his Buy rating and US$0.35 price target.
Based on BioLargo's limited Q4/23 details and sequential trends, Ryan estimates revenues totaled nearly US$3.9 million, translating to full-year sales approaching US$11.7 million versus his previous forecast of US$10.9 million.
Pooph appears to have posted over US$9 million in annual revenues after selling through major online and brick-and-mortar retailers. Ryan conservatively models Pooph delivered at least US$3.5 million in Q4 top-line results alone.
"BLGO's results continue to be driven by Pooph sales, its pet odor control product line that is being sold through national retailers like Amazon, Walmart, Chewy, and a growing list of other retailers," Ryan stated.
While not explicitly guiding to new products, Ryan pointed to early signs BioLargo could be expanding Pooph into pet wipes through channels like Chewy.
Beyond the core Pooph growth story, Ryan highlighted BioLargo subsidiary Clyra Medical's potential as it seeks major partners for its novel infection control solution. Further gains may also emerge from PFAS water remediation projects, with tailwinds from EPA regulation and funding.
He wrote, "Modeling expectations are difficult to time, but we endeavored to incrementally include PFAS-related revenues and developed a bull case Price Target of CA$0.45."
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BioLargo Inc.
- This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
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Disclosures for Oakridge Financial, BioLargo Inc., January 29, 2024
Analyst Certification: I, Richard Ryan, certify that the views expressed in this research report accurately reflect my personal views about the subject company and its securities. I also certify that I have not been, am not, and will not be receiving direct or indirect compensation related to the specific recommendations expressed in this report.
Important Disclosures: The analyst or a member of his/her household does not hold a long or short position, options, warrants, rights or futures of this security in their personal account(s). As of the end of the month preceding the date of publication of this report, Oak Ridge Financial did not beneficially own 1% or more of any class of common equity securities of the subject company. There is not any actual material conflict of interest that either the analyst or Oak Ridge Financial is aware of. The analyst has not received any compensation for any investment banking business with this company in the past twelve months and does not expect to receive any in the next three months. Oak Ridge Financial has been engaged for investment banking or advisory services with the subject company during the past twelve months and does anticipate receiving compensation for such services in the next three months. Oak Ridge Financial has not served as a broker, either as agent or principal, buying back stock for the subject company’s account as part of the company’s authorized stock buy-back program in the last twelve months. No director, officer or employee of Oak Ridge Financial serves as a director, officer or advisory board member to the subject company.
Other Disclosures: The information contained in this report is based on sources considered to be reliable, but not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made as of this date and are subject to change without notice. This report has been prepared solely for informative purposes and is not a solicitation or an offer to buy or sell any security. The securities described may not be qualified for purchase in all jurisdictions. Because of individual requirements, advice regarding securities mentioned in this report should not be construed as suitable for all accounts. This report does not take into account the investment objectives, financial situation and needs of any particular client of Oak Ridge Financial. Some securities mentioned herein relate to small speculative companies that may not be suitable for some accounts. Oak Ridge Financial suggests that prior to acting on any of the recommendations herein, the recipient should consider whether such a recommendation is appropriate given their investment objectives and current financial circumstances. Past performance does not guarantee future results. Additional information is available upon request.