Update shared on10 Sep 2025
Fair value Increased 4.43%The upward revision in Genus’s price target reflects improved analyst expectations, driven by notable increases in both forecast revenue growth (from 4.0% to 4.9% per annum) and net profit margin (from 7.88% to 8.73%), resulting in a new fair value of £27.97.
What's in the News
- Genus and Beijing Capital Agribusiness Co. (BCA) have accelerated the formation of a Chinese joint venture to commercialise PRRS 2 Resistant Pig (PRP), with BCA holding 51% and Genus 49%.
- The updated agreements secure an immediate milestone payment of USD 7.5 million and a gross cash payment of USD 160 million to Genus, contingent on Chinese regulatory approvals, expected to complete in FY26.
- In the subsequent stage, PIC China will acquire BCA’s Future Bio-Tech business (FBT) to advance PRP approvals, with all funding provided by BCA; this is expected to complete in 2026.
- Post-transaction, PIC China will be deconsolidated from Genus’s financial results, with Genus retaining a 49% equity-accounted interest in the joint venture.
- Transaction proceeds are intended for deleveraging the balance sheet and potential shareholder returns, consistent with Genus’s capital allocation framework.
Valuation Changes
Summary of Valuation Changes for Genus
- The Consensus Analyst Price Target has risen slightly from £26.78 to £27.97.
- The Consensus Revenue Growth forecasts for Genus has significantly risen from 4.0% per annum to 4.9% per annum.
- The Net Profit Margin for Genus has significantly risen from 7.88% to 8.73%.
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