In a report released today, Susan Anderson from B.Riley FBR reiterated a Buy rating on Turning Point Brands (TPB), with a price target of $45. The company’s shares opened today at $44.78, close to its 52-week high of $47.
Anderson noted:
“Turning Point Brands (TPB) reported 4Q18 net sales of $94.3M, versus B. Riley FBR’s estimate/ consensus of $92.1M/$89.2M. Adj. GM de-leveraged -205 bps, vs. our estimate of -100 bps, while SG&A margin de-leveraged -15 bps, vs. our estimate of +160 bps. 4Q adjusted EBITDA were $17.2M, vs. our/consensus $16.7M estimate, while adjusted EPS were $0.49, compared to our estimate/consensus of $0.55/$0.50. The smokeless products grew +10.2%, while smoking products decreased -6.3%. Adjusted gross margin leveraged +30 bps. 4Q leverage ended at 3.4x, within the company’s target range of 2.5x to 3.5x. In recent weeks we have seen what we believe is just the beginning of an active 2019, as TPB rolled out their propriety RipTide vape device, as well as new cones and unbleached papers from Zig-Zag.”
According to TipRanks.com, Anderson is a 3-star analyst with an average return of 1.7% and a 46.2% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and Children’s Place.
Currently, the analyst consensus on Turning Point Brands is a Moderate Buy with an average price target of $45.
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The company has a one-year high of $47 and a one-year low of $19.11. Currently, Turning Point Brands has an average volume of 119.7K.
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Turning Point Brands, Inc. provides tobacco products. It operates through following segments: Smokeless Products, Smoking Products and NewGen Products. The Smokeless Products segment includes both loose leaf chewing tobacco and moist snuff tobacco. The Smoking Products segment principally includes cigarette papers and Make-Your-Own cigar wraps.
