How might the consolidated single‑line reporting affect analyst coverage and the stock’s valuation multiples?

The move to present Lavie Bio’s first‑half 2025 results and the MicroBoost AI‑for‑Ag segment as a single‑line item in Evogene’s consolidated statements will likely thin the analyst coverage set. With less granularity, equity research teams will have to rely on higher‑level group metrics rather than segment‑specific EBITDA, cash‑flow or growth rates, making it harder to build differentiated earnings models. Consequently, analysts may downgrade their “coverage depth” rating (e.g., from “core” to “satellite” coverage) and may cut the number of forecasts they publish, which in turn reduces the flow of independent target‑price updates that typically keep the market’s valuation discipline in check.

From a multiples perspective, the reduced transparency tends to compress the price‑to‑sales (P/S) and EV/EBITDA ratios. Investors will apply a higher “discount for opacity” as they cannot easily assess Lavie Bio’s contribution to earnings growth versus the rest of Evogene’s portfolio. Historically, companies that bundle biotech or AI‑driven subsidiaries into a single line see a 5‑10 % multiple contraction until segment data reappear. In practice, expect the forward‑PE and EV/EBITDA to edge lower, potentially creating a modest valuation gap relative to peers with clearer segment reporting. Traders can test this by watching the reaction to the earnings call: a muted or negative price move on the day of release, followed by a short‑term pullback to support levels around the 50‑day EMA, could present a short‑bias trade. Conversely, if the market interprets the consolidation as a sign of operational integration and cost synergies, the stock may bounce back to its prior range, offering a buying opportunity on a rebound to the upper Bollinger Band with a stop just below the 200‑day moving average.