Tuesday - Maxim (NASDAQ:MXIM) Group has downgraded shares of ZIVO Bioscience, Inc. (NASDAQ: ZIVO) from Buy to Hold. The decision comes as the firm acknowledges the positive aspects of ZIVO's product, ZivoLife, but also notes significant challenges that the company faces. The analyst cited the company's delisted status and capital constraints as key reasons for the downgrade.
ZIVO Bioscience's proprietary algal biomass and its potential to secure a deal for its innovative poultry feed ingredient were highlighted as positive factors. However, these were not enough to maintain the previous Buy rating. The firm has also decided to remove the previous $12.00 price target for ZIVO's shares.
The company's financial outlook was adjusted, with the 2024 revenue estimate being lowered while the 2025 revenue forecast remains unchanged. This update is based on the first quarter results of 2024 and the firm's subsequent expectations for ZIVO's financial performance.
In terms of profitability, the firm has narrowed its GAAP loss per share estimates for both 2024 and 2025. This adjustment reflects anticipated lower operating expenses and a higher expected share count for ZIVO Bioscience, Inc.
The analyst's statement concluded with a summary of the factors influencing the downgrade, emphasizing the operational and financial challenges that led to the revised stock rating and the withdrawal of the price target.
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