BALTIMORE, MD / ACCESSWIRE / April 13, 2023 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research report on Charlie's Holdings, Inc. (OTCQB:CHUC), positioned as the segment leader in the production and sales of alternative products to combustible cigarettes. The Goldman report carries a price target. To view the new research report, along with disclosures and disclaimers, or to download the report in its entirety, please visit: https://bit.ly/3GF18V5.
Charlie's Holdings, Inc. is positioned as the segment leader in the production and sales of alternative products to combustible cigarettes targeting a global market representing hundreds of millions of potential customers. CHUC's popular, diverse offering includes non-combustible nicotine-related products, alternative alkaloid vapor products, and hemp-derived vapor and edible products. The Company's products are sold in nearly 100 countries around the world to select distributors, specialty retailers, and third-party online resellers.
In the Opportunity Research report, analyst Rob Goldman reviews Charlie's Holdings' competitive positioning, strategic and operational inflection points, and the potential future impact of these events on the companies and its combined valuation.
Strong Product Sales Growth in 2023 Could Drive Valuation
Goldman commented, "Our forecasts call for $26.5M in sales for 2022, $44M for 2023 and $75M in 2024, a whopping 41% CAGR. Plus, CHUC is poised to generate meaningful operating income in 2023. Despite this projected sales growth, CHUC trades at less than 1x projected 2022 revenue and 1.8x 2023 projected revenue, major discounts to the Company's peer group."
Investors Overlooking Current Revenue Potential; Focused Only on Future FDA Potential
"In our view, Charlie's Holdings' stock is undervalued relative to its revenue success," noted Goldman. "This is likely due in large part to investors overlooking current growth success and new initiatives and instead focusing only on the potential of an FDA marketing approval for the Company's flavored eliquids and disposable vape products."
Peer Group Valuation Gap Set to Narrow
"Our 6-9-month price target represents 1.8x projected 2023 revenue, a nearly 50% discount to the current 3.4x peer group metric, despite the projected CHUC revenue growth. Looking ahead, we envision CHUC's price/revenue multiple to settle at 3.1x 2024 revenue, essentially in line with the peer group figure. In addition, a series of valuation upside catalysts exist, including a likely stock up-list to a national securities exchange," concluded Goldman.
About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.
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This press release contains excerpts of our most recently published company report on Charlie's Holdings, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from Charlie's Holdings, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.
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Rob Goldman, Analyst
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SOURCE: Goldman Small Cap Research