Roth sees ‘limited’ downside to Guru Organic from Pepsi litigation

Guru Organic Energy (GUROF) and its former distributor Pepsi (PEP) are involved in mutual breach-of-contract lawsuits in Ontario’s Superior Court, with both sides alleging violations of their distribution agreement, Roth Capital tells investors in a research note. Since Pepsi’s claims are already reflected in Guru’s financials, downside risk appears limited, while a favorable outcome for Guru could provide meaningful upside, though resolution is likely to take several quarters unless a settlement is reached, the firm says. Roth maintains a Buy rating and C$8 price target on the shares.