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Charlotte’s Web: Analysts’ Ratings and Price Target

As of October 30, Charlotte’s Web Holdings (CWEB) had lost 6.39% of its value in the month and was trading at 17.33 Canadian dollars. Currently, eight analysts are covering Charlotte’s Web stock. Its consensus target price is 31.95 Canadian dollars as of October 30, slightly lower than last month’s target price. Compared to its current target price, Charlotte’s Web is severely undervalued.

Charlotte’s Web’s financials

The company’s second-quarter reported revenue rose 45% YoY (year-over-year) and 16% sequentially to 33.17 million Canadian dollars. Even though its revenue rose, it missed analysts’ estimate of 36.59 million Canadian dollars. Furthermore, its net profit fell 41% YoY and 6% sequentially to 2.88 million Canadian dollars. Its estimated financials for the third quarter stand at 43.07 million Canadian dollars in revenue and 7.84 million Canadian dollars in net income. Its EPS are expected to rise 200% sequentially to 0.079 Canadian dollars.

Analysts’ recommendations and target price

In the graph above, we can see that analysts’ target price on Charlotte’s Web has been steady for the last few months. Right now, eight analysts cover the stock. This number has been stable since August. It’s risen from three to eight in the last seven months.

In terms of ratings, CWEB has a “strong buy” rating from two analysts, while the rest have given it “buy” ratings. It doesn’t have “hold” or “sell” ratings, which shows that analysts are feeling good about it. Its target price is 31.95 Canadian dollars, slightly lower than last month’s target of 32 Canadian dollars.

Charlotte’s Web versus its peers

Charlotte’s Web Holdings stock is up 52.37% YoY, whereas Aurora Cannabis (ACB) is down 38%, Cronos (CRON) is up 21%, Aphria (APHA) is down 48%, Canopy Growth (WEED) is down 38%, and Tilray (TLRY) is down 75%.

With eight analysts covering the stock, its consensus rating stands at 1.8. Let’s take a look at its peers’ ratings:

  • 16 analysts cover Aurora Cannabis. The consensus rating on the stock stands at 2.6.
  • 12 analysts cover Cronos. The consensus rating on the stock stands at 2.7.
  • 12 analysts cover Aphria. The consensus rating on the stock stands at 2.1.
  • 20 analysts cover Canopy Growth. The consensus rating on the stock stands at 2.5.
  • 18 analysts cover Tilray. The consensus rating on the stock stands at 2.8.

Trend analysis

Along with many of its peers, Charlotte’s Web stock has fallen in the wake of its second-quarter results. Before it released its interim results on August 14, the stock was trading at 28.80 Canadian dollars. Since then, the value of the stock is down 40%, and it’s currently trading at 17.36 Canadian dollars.

Over the last 12 months, the company’s stock has risen 52.3%. It was trading at 11.44 Canadian dollars a year ago. The year-to-date increase in its value is 14.44%. Even though it’s been falling in recent weeks, analysts are optimistic about its future performance. Its consensus target price is 83.92% higher than its current trading price.

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