Canaccord Genuity Maintains Their Hold Rating on Sequential Brands

Canaccord Genuity analyst Camilo Lyon maintained a Hold rating on Sequential Brands (NASDAQ: SQBG) yesterday and set a price target of $2. The company’s shares opened today at $1.74, close to its 52-week low of $1.36.

Lyon wrote:

“SQBG reported Q1 revenue of $38.1M (-3.3%) and adj. EPS of 6c. That said, Q1 reported results were impacted by a change in the accounting standard (ASC 606) relating to revenue recognition. Under the old standard (ASC 605), Q1 revenue was flat (vs. our -1% est.) to LY and adj. EPS was 8c vs. our 9c estimate (consensus was 8c). Furthermore, adj. EBITDA was $21.2M (or $22.5M under the old standard) vs. our $22.2M estimate. As such, excluding the impact from the accounting change, Q1 results were relatively close to expectations. Importantly, management noted that they are making progress with their refinancing efforts and expect to reach an agreement in Q2. A successful refinancing is likely to reduce the interest rate and free up some cash flow. Ultimately, it should strengthen the company’s ability to resume pursuing its acquisition strategy when/if opportunities present themselves.”

According to TipRanks.com, Lyon is a 1-star analyst with an average return of -0.7% and a 47.2% success rate. Lyon covers the Consumer Goods sector, focusing on stocks such as Columbia Sportswear, Steven Madden, and Under Armour.

Sequential Brands has an analyst consensus of Hold, with a price target consensus of $2.

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The company has a one-year high of $4.08 and a one-year low of $1.36. Currently, Sequential Brands has an average volume of 153.8K.

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Sequential Brands Group, Inc. engages in promoting, marketing, and licensing portfolio of consumer brands. It provides fashion, home, athletic, and lifestyle categories, including Martha Stewart, Jessica Simpson, AND1, Avia, Joe’s Jeans, Heelys, and GAIAM. It offers its products to various distribution channels, including to retailers, wholesalers, and distributors. The company was founded in 2015 and is headquartered in New York, NY.