Needham analyst Gerald Pascarelli has maintained their neutral stance on TPB stock, giving a Hold rating today.
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Gerald Pascarelli has given his Hold rating due to a combination of factors related to Turning Point Brands’ recent performance and future prospects. The company reported a robust quarter with impressive growth in revenue, gross margin, and EBITDA, primarily driven by a significant increase in modern oral sales. Despite this strong performance, the revised guidance for modern oral products appears conservative, suggesting a potential slowdown in growth, which might not align with the current distribution opportunities and year-to-date sales trends.
Investors have shown optimism, especially after multiple upward revisions in guidance throughout the year. However, there is a possibility that the market expectations could exceed the company’s guidance and revenue projections for the fourth quarter and beyond. While Pascarelli acknowledges the company’s successful execution and positive growth outlook, the Hold rating reflects a cautious stance, considering the potential for market expectations to outpace the company’s conservative guidance.
According to TipRanks, Pascarelli is a 2-star analyst with an average return of 0.0% and a 38.82% success rate. Pascarelli covers the Consumer Defensive sector, focusing on stocks such as Vita Coco Company, Celsius Holdings, and Constellation Brands.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $103.00 price target.