Sow Good downgraded to Hold from Buy at Craig-Hallum

Craig-Hallum downgraded Sow Good (SOWG) to Hold from Buy with a price target of $4.50, down from $25. The firm thinks Sow Good – a producer of freeze-dried candy – has strong potential to continue leading the category from an innovation perspective and drive continued long-term growth, but notes two “significant headwinds that will take a couple quarters to resolve.” Namely, Mars has moved into the freeze-dried candy category and is seemingly taking aggressive action to gain exclusive shelf space at leading retailers, while in addition extreme heat led to a pausing of shipments throughout Q3 and into October and the firm expects a meaningful slowdown in sales over the next couple quarters while these affected SKUs work themselves out of the channel.