Roth/MKM has opened coverage on BioHarvest Sciences (NASDAQ:BHST) with a buy recommendation and a $10.00 price target, a level that represents approximately a 125% increase relative to the current price of $4.45. According to InvestingPro data cited by the analyst, other published targets span $12 to $15, which the analyst interprets as an indication the shares may be undervalued.
The brokerage’s thesis centers on BioHarvest’s proprietary Botanical Synthesis platform, which the analyst believes will underpin material revenue expansion across both of the company’s operating segments - Products and CDMO. The analyst projects that annual cash flow will become sustainably positive beginning in 2027.
BioHarvest’s business is divided into two distinct units. The Products segment comprises finished consumer offerings such as capsules, edibles, teas, coffees and hydration beverages developed from an expanding array of plant sources. The CDMO segment provides contract development and manufacturing organization services, and Roth/MKM expects a rapid enlargement of the CDMO partnerships roster to act as a growth multiplier for the Products side of the business.
The buy rating is explicitly tied to three factors cited by the firm: rapid revenue growth, an expanding market footprint and the emergence of profitability. Those elements together form the basis for the firm’s positive outlook and the assigned $10.00 price target.
In separate corporate developments, BioHarvest secured a $1.6 million grant from the Israeli Innovation Authority. The funding is non-dilutive and is intended to advance the company’s second-generation Botanical Synthesis platform, which focuses on producing plant-based compounds without the need to cultivate whole plants.
Concurrently, the company has launched VINIA Blood Flow Hydration, a new electrolyte beverage aimed at the U.S. market. The drink combines hydration and what the company describes as blood flow enhancement technology, and it is being sold nationwide through BioHarvest’s website. The product is positioned within the $13 billion U.S. electrolyte drinks market and contains 23mg of a red grape polyphenol complex, which includes 6mg of Piceid Resveratrol.
These corporate moves - the government-backed grant, the prioritization of the Botanical Synthesis platform, the CDMO expansion strategy, and the consumer product rollout - are presented by the analyst as complementary elements supporting the firm’s buy recommendation.
While the analyst’s valuation range from peers on InvestingPro sits higher than Roth/MKM’s $10.00 target, Roth/MKM’s initiation reflects a view that BioHarvest is entering a phase of scaling commercial activities and moving toward positive cash flow within the specified 2027 timeframe.