Vylor Inc: Seeding the Growth of Tomorrow; Initiate Buy

We initiate coverage on Vylor (VYLR) with a Buy rating at $89 price target (~20% potential upside). Vylor is a leader in the global seeds market, with #1 or #2 share in most markets they participate in. Vylor spends ~10% of sales on R&D which converts to annual seed yield growth which is captured through LSD% pricing, and there is a unique opportunity over the next 10 years to capture more licensing income on traits. We think share gains in global corn, soy, and eventually wheat trait sales could add ~1% to annual pricing vs. historical. This could add ~$1.6B of EBITDA through 2040E (2% uplift on top of the base algo), and we don't see this priced in. We estimate Vylor can grow EBITDA at a ~10% CAGR through 2029, and sustain HSD-10% EBITDA growth longer term. We estimate the market is pricing in only ~7% annual growth. We see the stock trading at 16.5x/15.0x our 2027/2028 EBITDA estimates, a 9-11% discount to peers with similar growth/return characteristics. Catalysts are beats vs. con