Morgan Stanley Starts Vylor Inc (VYLR) at Overweight

Morgan Stanley analyst Vincent Andrews initiates coverage on Vylor Inc (NYSE: VYLR) with a Overweight rating and a price target of $85.00.

The analyst comments: “We initiate coverage of Vylor with an Overweight rating and an $85 price target, which assumes ~18x 2027 EBITDA, the midpoint of the 16.5x-20x range we have previously outlined in our research (comparable to a set of luxury chemicals, business services, and pharma/biotech companies with similar profiles and fundamentals). We remain of the view that up to a 20x multiple is possible (against the same comp set), and we would neither be surprised nor have any issues if the stock were to trade at that level sooner rather than later. However, for now, such an outcome remains our bull case ($112), not our base case. While Vylor is likely to be a consensus long, we think this is for good reason.

We see Vylor as a highly differentiated compounder (we expect at least a 9% EPS CAGR 2027-29) that will also benefit from both scarcity (as the only pure play seed company) and seed's lower correlation to the broader macro economy versus the average Chemical or Industrial company (i.e., it should provide attractive portfolio diversification).

Further, the company is developing incremental growth vectors (wheat, gene editing, et al.) that could accelerate the existing growth algorithm into 2030+ but drive a higher multiple sooner as proof points are demonstrated.”

For an analyst ratings summary and ratings history on Vylor Inc click here. For more ratings news on Vylor Inc click here.

Shares of Vylor Inc closed at $68.26 yesterday.

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