International Stock Targets announced a “Strong Buy” recommendation for China Organic Agriculture (CNOA.OB). In addition to upgrading their overall buy/sell recommendation, International Stocks Targets have also specified a one month and six month price target of $5.00.
China Organic Agriculture, Inc recently announced increase revenue and earnings forecasts for 2007. China Organic expects revenues to total an upwards of $45 million for calendar year 2007, a 500% increase over the $9 million for the comparable period the previous year. Furthermore, the company has also raised earnings to more than $14 million, or an estimated $0.29 in earnings per share for calendar year 2007. This figure represents an increase of approximately 408% over the $3.43 million reported during the comparable period the previous year.
This new guidance represents an increase of corporate initiatives to increase productivity, as well as shareholder value. The updated financial forecast follows CNOA’s recently announced production and distribution partnerships with Nanjing Suguo Supermarket, Beijing Hualian Supermarket, Changchun Huaxing Ltd, Changchun Qinghai Oil and Grain Ltd, Songyuan Oil and Grain Ltd. All of these new contracts are expected to generate a total of $21 million in revenues for this current period.
Huizhi Xiao, Chairman of China Organic, stated, “These strategic sales agreements help China Organic purchase and process green and organic rice with higher margins and also enables us to increase our production significantly in a short amount of time. In addition, these new contracts better ensure the successful sales of our newly produced rice, helping us achieve our sales goals and generating increased returns and value for our shareholders. We are very pleased with our projected revenues for this calendar year and expect another strong year of sustainable growth in the years to come.”
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