KushCo: 6 Analysts Say “Buy,” Price Target Shrinks



KushCo Holdings (KSHB) recently announced its fourth-quarter and full-year financial results. The company reported impressive results, beating analyst estimates. The company’s stock is trading in the same line since the day of the earnings release. Currently, the stock is trading at $1.83 as of November 21.

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KushCo financial highlights

KushCo analysts reported $47 million in revenue for its fourth quarter. This implies a 2.6% increase in the estimates of the analysts. This reported revenue is 135% more than revenue from the same period last year. Also, the company announced revenue of $149 million for the fiscal year. This implies a year-over-year growth of 186%.

However, KushCo reported a net loss of $11.5 million. This implies a YoY (year-over-year) decline of 259%. The company’s net loss for the quarter missed the analysts’ estimates by 11.5%. The company also reported a net loss of $39.6 million for the full year, implying a YoY decline of almost 63%. The company’s net loss for the year missed the analysts’ estimates by 9.36%.

KushCo expects to report net revenue between $230 million and $250 million for fiscal 2020. Also, the company expects the new hemp business to report revenue of $25 million for the fiscal year.

Analysts’ ratings and target price

Currently, eight analysts cover the stock of KuchCo holdings. Out of this, two analysts recommend “strong buy” and six analysts recommend “buy.” The stock does not have any hold, sell, or strong sell recommendations. The stock recommendations and analysts have been constant for the past six months.

Unlike the analysts’ ratings, the consensus price target has been declining in recent months. The consensus target price of the company further declined to $5.8. This target price is about 217% more than the current target price of $1.83.

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Trend analysis of KushCo stock

KushCo stock is down by 69.5% year-to-date. Even though the stock value has declined this year, it gained analysts’ attention. The number of analysts covering the stock grew from three at the start of the year to eight. The consensus target price of the stock has been steadily declining for the last six months.

The company’s stock value shrunk by over 65% in the last year. However, the stock has maintained its price for the last two weeks due to its impressive revenues for the fourth quarter.

KushCo’s peers

HEXO (HEXO) recently announced its fourth-quarter earnings, which missed the estimates of the analysts. The company’s stock value declined by almost 20% from the time of its earnings announcement.

OrganiGram (OGI) is set to report fourth-quarter earnings on November 25. The company’s projections have been very impressive. The company’s stock value has been up by more than 25% in the last week.

Also, Aphria (APHA) reported first-quarter earnings. The company’s revenue missed the estimates, but it surpassed the EBITDA and EPS estimates. The stock price of the company fell by almost 9% from the time of its first-quarter earnings release.


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