TheStreet.com’s ratings team has changed their recommendation for Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) from a hold rating to a buy rating, with a score of “B”. TheStreet’s analysts cited revenue growth, solid financial positions with reasonable debt levels, impressive stock price performance, attractive valuation, and cash flow from operations as reasons for the upgrade. They also stated that SKBI should provide a better performance opportunity than other stocks that they cover.
Being a Chinese animal health and wellness company, and serving the 29 Chinese agricultural provinces, Skystar is in a unique growth position. China has previously had a tainted image in the agricultural exports industry due to unsafe livestock exports in the past. With the Chinese government launching animal health and wellness initiatives, Skystar has seen great revenue growth (25.6% quarter over quarter since last year).
In addition to the central government’s role in educating farmers on the importance of animal vaccinations, supplementation, and medication, Skystar has launched education initiatives of their own. Skystar regularly holds educational seminars for farmers to learn about the importance of their livestock’s health. With increased awareness on the importance of livestock health, Skystar could continue to see their 100+ vaccinations and formulas sell more.
Contributed by:
Josh S.
