Maxim maintains Buy on cbdMD despite Q4 revenue miss

Maxim notes that cbdMD (YCBD) reported fiscal Q4 revenue and GAAP EPS below the firm’s estimates on December 22, which the firm attributes as primarily due to Meta (META) temporarily blocking cbdMD’s advertisements on its social media platforms. Due to the Q4 results, the firm is reducing its FY24 and FY25 revenue estimates and widening its GAAP loss per share estimates, but it remains bullish on cbdMD’s portfolio of brands as well as its execution of strategic growth initiatives and maintains a Buy rating and $3 price target on the shares.