Needham analyst Gerald Pascarelli has maintained their neutral stance on TPB stock, giving a Hold rating on October 25.
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Gerald Pascarelli has given his Hold rating due to a combination of factors surrounding Turning Point Brands’ upcoming third-quarter earnings. He anticipates that the company’s modern oral revenues will play a crucial role in influencing investor sentiment and the stock’s performance when the earnings are announced.
While the company has experienced significant revenue growth in previous quarters, Pascarelli expects this growth to moderate, reducing the chances of a substantial increase in guidance. Although scanner trends appear strong and the company has made strides in larger chains, Pascarelli advises caution in interpreting this data due to the company’s significant presence in independent retailers and direct-to-consumer channels. Additionally, efforts to expand into larger chains may lead to increased slotting fees, which could impact financial performance.
Pascarelli covers the Consumer Defensive sector, focusing on stocks such as Turning Point Brands, Constellation Brands, and Molson Coors. According to TipRanks, Pascarelli has an average return of 2.6% and a 40.48% success rate on recommended stocks.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $97.00 price target.