Home Cannabis Charlotte’s Web Holdings Rises as Analyst Recommends ‘Buy’

Charlotte’s Web Holdings Rises as Analyst Recommends ‘Buy’

Charlotte’s Web Holdings

Charlotte’s Web Holdings (CWBHF) is trading with gains of 4.8% as of 10:50 AM EST. The stock had seen upwards price action of 13.5% on Thursday also and is up 41.81% for the year based on its closing prices on February 1. Cormark Securities initiated coverage on Charlotte’s Web Holdings with a “buy” rating and a target price of 25.50 Canadian dollars.

PART 1

Charlotte’s Web Holdings has received a “strong buy” rating from one analyst, while the remaining three analysts polled by Thomson Reuters on February 4 have rated the stock as a “buy” or some equivalent. The stock doesn’t have any “hold” or “sell” recommendations. Charlotte’s Web Holdings has received a mean consensus price target of 27.52 Canadian dollars, which represents a potential upside of 26% over its closing prices on February 1.

Analysts’ estimates

Charlotte’s Web Holdings is expected to post revenues of $151 million in 2019 as compared to $70.1 million in 2018. The company’s EBITDA is expected to rise to $55.8 million in 2019 from $23.5 million last year. Charlotte’s Web Holdings is trading at a 2019 PE multiple of 113x.

Aurora Cannabis (ACB) and Canopy Growth (WEED) have a 2020 PE of 51.7x and 445x, respectively.

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Correction: An earlier version of this article indicated that CWBHF had seen upward price action of 13.5% on Friday, rather than Thursday.

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