SANW Upgraded Recommendation – Zacks Research
Ian Gilson, CFA
S&W Seed: Upgrading recommendation:
The acquisition of the company’s distributer (Genetics International), responsible for nearly half of the company’s annual revenue, improves S&W Seed’s outlook, adds to operating profit, and builds brand awareness overseas. Consequently we have upgraded our recommendation from Neutral to Outperform.
The First Order:
S&W Seed (NasdaqCM: SANW) has received its first order under the new relationship with Richard Penner Consulting, the prior owner of its distribution channel in the Middle East, for alfalfa seed to be shipped to Kuwait. This should ship in July in S&W branded bags, which should build brand awareness in Kuwait. Although Kuwait is not a large market it was not a prior customer of Genetics International.
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