In a report released today, Christopher Howe from Barrington maintained a Buy rating on Castle Brands (NYSE: ROX), with a price target of $2. The company’s shares opened today at $1.00.
“We believe the company should continue to deliver higher‐than‐ industry average revenue growth and generate adjusted EBITDA margin expansion with increased sales leverage. Castle Brands has just below 20% penetration of an identified potential 200,000 PODs in the U.S. market, providing a significant opportunity to increase volume through new sales locations. Valuation is attractive with the stock trading at a discounted 2.2x EV/Sales on our NTM sales estimates compared to 6.9x for the peer group average multiple. Due to increased debt levels incurred since the end of FY/17 combined with smaller company market liquidity, we apply a discounted multiple of 4.1x Brands compared to the larger peer group to derive our $2 price target. Company Description Castle Brands, Inc.”
According to TipRanks.com, Howe is a 1-star analyst with an average return of -8.5% and a 28.6% success rate. Howe covers the Industrial Goods sector, focusing on stocks such as ASV Holdings Inc, Kadant Inc, and Woodward.
Currently, the analyst consensus on Castle Brands is a Moderate Buy with an average price target of $2.
See today’s analyst top recommended stocks >>
The company has a one-year high of $1.42 and a one-year low of $0.90. Currently, Castle Brands has an average volume of 284.4K.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ROX in relation to earlier this year. Most recently, in August 2018, Richard Lampen, the President & CEO of ROX bought 100,000 shares for a total of $35,000.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Castle Brands, Inc. is engaged in the importation, marketing and sale of premium and super premium brands of rums, whiskey, liqueurs, vodka and tequila in the United States, Canada, Europe and Asia. It offers premium brands in beverage alcohol categories: rum, whiskey, liqueurs, vodka, tequila, and wine.