Analyst Anthony Vendetti downgraded New Age Beverages Corp (NASDAQ: NBEV) from Buy to Hold.
The analyst cited:
- NBEV’s market price has significantly exceeded our prior $3 price target, which we derived using a 10-year DCF analysis and comparative valuation, due to a substantial run up in share price that is not based on fundamentals, in our opinion. Therefore, we would not initiate any new positions in the stock at this time.
- Yesterday, NBEV announced it expects to debut its portfolio of cannabidiol (CBD) infused beverages at the North American Convenience Store (NACS) show.
- According to a report from BNN Bloomberg published on September 17, 2018, Coca-Cola Co. (KO – NR) is closely eyeing the cannabis market and is potentially looking to develop a CBD-infused beverage.
- On August 24, 2018, NBEV completed a $9.5M equity offering at $1.28 per share. This also unlocked a new asset-based credit facility with Siena Lending Group.
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