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How Analysts See Charlotte’s Web Holdings after May Sell-Off

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Jun. 4 2019, Updated 9:36 a.m. ET

Charlotte’s Web Holdings

Charlotte’s Web Holdings (CWBHF) fell 6.2% on June 3 amid the weakness in the cannabis space. The stock was weak in May as well, losing more than 30% in the month and underperforming the cannabis ETFs.

The Horizons Marijuana Life Sciences ETF and the ETFMG Alternate Harvest ETF saw negative price action of 12.5% and 13.2%, respectively, in May.

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Analysts’ ratings

Charlotte’s Web Holdings has received “strong buy” ratings from two analysts, while the remaining five polled by Thomson Reuters have given it “buy” ratings. Charlotte’s Web Holdings has received a mean consensus price target of 32.27 Canadian dollars, which represents a potential upside of almost 93% over its June 3 closing price. Charlotte’s Web Holdings released its first-quarter earnings results last month and reported a 64% year-over-year rise in revenue. However, its EBITDA fell from $4.6 million to $4.5 million in the period.

New product

Charlotte’s Web Holdings is involved in the production and distribution of CBD wellness products. It has been taking several measures to grow its business. Yesterday, the company announced a new product line called CBD Gummies. It will offer three options for the product. Charlotte’s Web SLEEP will aid in restful sleep, while Charlotte’s Web CALM will help in managing stress. The third product, Charlotte’s Web RECOVERY, will “support healthy inflammatory response.” Markets gave a miss to this announcement yesterday as Charlotte’s Web Holdings fell in line with other cannabis players. The company also announced the expansion of its products for pets at the beginning of May.

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