Maxim starts cbdMD at Buy, sees shorter pathway to profitability

Maxim initiated coverage of cbdMD with a Buy rating and $3.00 price target. The company is a commercial-stage CBD health supplement company that is well positioned in the U.S. e-commerce sales channel as well as in several niche and international markets, the analyst tells investors in a research note. cbdMD’s recently enacted several initiatives to reduce costs and drive operational efficiencies, which included reducing SKU count from 190 to approximately 60, are suppressing revenues in FY23, but these initiatives will also enable it to scale topline in FY24 and shorten its pathway to sustained profitability, Maxim adds.