BUZZ-Stifel starts Carbios at 'buy' as asset-light model supports strong business case

** Stifel starts coverage of Carbios ALCRB.PA with "buy", as it likes the French biotech company's asset-light business model with recurring revenue and strong partnerships

** The model, based on licensing out technology for up-front fee and recurring royalties rather than investing in own plants, could result in revenue of EUR 228 mln ($240 mln) with a 28% margin by 2028, Stifel's base case suggests

** The broker says financing for Carbios' chemical recycling plant construction should be secured in Q1 2025, potentially boosting the share price that has dropped by 70% since October on the back of financing risk and possible construction delay

** It notes the company is backed by investors such as L'Oreal OREP.PA, L'Occitane and Michelin MICP.PA, while its proprietary PET plastic recycling technology and expectations of lower future material costs also support the investment case

** Stifel sets its PT at EUR 19, representing a 157.5% upside to current price

** All three analysts that cover Carbios rate the stock "strong buy" or "buy" - LSEG

($1 = 0.9495 euros)

(Reporting by Jakob Van Calster)

((Jakob.vancalster@thomsonreuters.com))