By Sam Boughedda
Investing.com — Bonitas Research released a short report on Agrify Corp (NASDAQ:AGFY) Thursday, pushing its stock further into the red, putting it on course for its sixth down day in a row.
In a research note, Bonitas said Agrify created "artificial demand for its product by financing undisclosed company insiders to act as independent customers."
Agrify shares are down 27% Thursday afternoon. But Roth Capital said the report was "baseless."
Roth analyst Scott Fortune said it "makes shallow, broad-based accusations," and Agrify's current revenue streams have a minimal conflict of interest. In further defense of the company, the Roth analyst explained that the report did not target Agrify's technology which he described as a "key differentiator," and he has complete confidence in the company.
Fortune reiterated a buy rating and $32 price target on Agrify shares.
Bonitas said Agrify's revenues are inflated. The research firm told investors it found two key issues with Agrify's total partnerships, mainly that they are connected with insiders or with unproven operators.