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Kanen Wealth Management publicly called for the company to explore a sale on Friday. The firm argues that the current stock price is too low compared to other beverage makers and that a sale would be the best way to get value for shareholders.
This adds pressure on the board to act. The company responded by saying it welcomes input from owners, but it did not commit to a sale process. For those who own the stock, this activist interest can act as a floor for the price, as it suggests professional investors see the brand as more valuable than the market currently does.
Source: GlobeNewsWire
Morgan Stanley raised its price target for the stock to $1.75 on August 7. This is a small move that keeps the target near the current stock price, though it remains below the average analyst target of about $2. While the firm did not change its overall rating, the higher target suggests a slightly more positive view of the company's path after its recent earnings report. For long-term owners, this is a routine update that shows analysts are adjusting their models to match the latest sales and profit numbers.
Source: Morgan Stanley
The company brought in $45 million in sales last quarter, a 1 percent increase from the year before. While growth was modest, it hit the high end of what the company had promised. It also reported a small profit of $0.5 million in adjusted EBITDA, a measure that looks at cash earnings before accounting for things like interest and taxes.
This was the first report under a new CEO, who pointed to a 10 percent sales jump across the first half of the year as a sign of momentum. The business is still losing money overall, reporting a net loss of $2.9 million, but much of that came from non-cash costs like stock-based pay. The focus remains on whether the brand can keep growing its mainstream appeal while keeping its costs under control.
Source: 8-K filing
Analysts have kept their ratings steady following the company's recent earnings report and leadership changes. Half of the 8 analysts rate the stock a buy, and the average target of $2.38 suggests a potential 79% gain.
Management consistently sets a low bar and clears it by a few cents every quarter, suggesting they have a tight handle on their costs and a conservative forecasting style.
| Expectation | |
|---|---|
| EPS | $-0.05 |
| Revenue | $45M |