Northland Securities Sticks to Its Buy Rating for KushCo Holdings Inc (KSHB)

By Carrie Williams

Northland Securities analyst Greg Gibas maintained a Buy rating on KushCo Holdings Inc (KSHBResearch Report) today and set a price target of $8. The company’s shares closed yesterday at $5.13.

Gibas observed:

“We believe KSHB will continue to benefit from growing & deepening its customer relationships while also cross-selling throughout its customer base as the company continues to power the global cannabis ecosystem. Key Points KSHB reported FQ3 revenues, adjusted EBITDA and EPS of $41.5M, $(7.5)M and $(0.12), which were all ahead of our $40.8M, $(7.6)M and $(0.15) estimates, respectively. Top-line strength in the quarter was driven by attractive sequential growth across the company’s Energy & Natural Products (+9%) product categories. With respect to specific markets, KSHB recognized notable sequential growth across newer recreational markets (MI +164%, MA +85%, ME +28%) as well as more established markets (NV +46%, OR +46%, WA +27%, CO +26%).”

According to TipRanks.com, Gibas is ranked #4326 out of 5234 analysts.

KushCo Holdings Inc has an analyst consensus of Strong Buy, with a price target consensus of $7.90, representing a 54.0% upside. In a report issued on June 26, Benchmark Co. also initiated coverage with a Buy rating on the stock with a $7 price target.

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Based on KushCo Holdings Inc’s latest earnings release for the quarter ending May 31, the company reported a quarterly GAAP net loss of $10.6 million. In comparison, last year the company had a GAAP net loss of $2.17 million.

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KushCo Holdings, Inc. engages in the marketing and sale of packaging products and solutions to customers operating in the regulated medical and recreational cannabis industries. Its brands include Kush Supply Co., Kush Energy, The Hybrid Creative, and Koleto Packaging Solutions.