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Analysts Recommend a ‘Buy’ for Charlotte’s Web Holdings

Stock price movements

On December 31, Charlotte’s Web Holdings (CWBHF), a cannabidiol (or CBD) wellness products company, closed at $11.11 on the OTC market, which is 11.06% higher than its previous closing price. According to the company’s management discussion and analysis, Charlotte’s Web Holdings ranks first by market share in production and distribution in the hemp-based CBD wellness products segment. The company’s products are made from industrial hemp extracts and thus have no psychoactive effects. Charlotte’s Web Holdings isn’t involved in the business of medical or recreational marijuana.

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On December 31, Charlotte’s Web Holdings closed at 15.17 Canadian dollars on the Toronto Stock Exchange, which is 11.14% higher than its previous closing price. The 52-week high price for this stock was 20.76 Canadian dollars, while the 52-week low price was 8.13 Canadian dollars.

Charlotte’s Web Holdings is trading at a forward EV-to-revenue multiple of 13.00x, 6.07x, and 3.51x for fiscal 2018, 2019, and 2020, respectively. The company is also trading at forward EV-to-EBITDA multiples of 39.45x, 17.12x, and 9.85x for fiscal 2018, 2019, and 2020, respectively.

Analysts’ recommendations and target price for Charlotte’s Web Holdings

The 12-month consensus analyst recommendation for Charlotte’s Web Holdings on January 2 was a “buy.” The 12-month consensus target price for the company is 28.19 Canadian dollars, which is 85.83% higher than its last closing price on the Toronto Stock Exchange (or TSX) on December 31, 2018. The highest target price estimate for the company is 34.56 Canadian dollars, and the lowest target price estimate is 21 Canadian dollars.

Out of the three analysts covering Charlotte’s Web Holdings on January 2, one analyst has rated the company as a “strong buy,” and two analysts have rated the company as a “buy.”

In the next article, we’ll discuss revenue growth trends for Charlotte’s Web Holdings in greater detail.

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