Goldman Small Cap Research Publishes New Research Report on Charlie's Holdings, Inc.

Rhea-AI Summary

Goldman Small Cap Research has released a new research report on Charlie's Holdings, Inc. (OTCQB:CHUC), highlighting the company's leadership in producing alternatives to combustible cigarettes. The report discusses CHUC's projected revenue growth, estimating $26.5M in 2022, $44M in 2023, and $75M in 2024, representing a 41% CAGR. Despite this growth, CHUC is trading at significant discounts compared to its peers, with prices under 1x 2022 revenue and 1.8x 2023 revenue. Analyst Rob Goldman suggests that the undervaluation stems from investors' focus on future FDA approvals instead of current revenue achievements. The report sets a 6-9 month price target of 1.8x 2023 revenue, indicating a potential narrowing of the valuation gap with industry peers.

Positive

• Projected revenue growth from $26.5M in 2022 to $44M in 2023 and $75M in 2024, reflecting a 41% CAGR.
• Currently trading at less than 1x projected 2022 revenue and 1.8x 2023 projected revenue, indicating significant potential upside.
• Potential for meaningful operating income in 2023.

Negative

• Stock undervaluation attributed to investors focusing on FDA approval potential rather than current sales success.

BALTIMORE, MD / ACCESSWIRE / April 13, 2023 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research report on Charlie's Holdings, Inc. (OTCQB:CHUC), positioned as the segment leader in the production and sales of alternative products to combustible cigarettes. The Goldman report carries a price target. To view the new research report, along with disclosures and disclaimers, or to download the report in its entirety, please visit: https://bit.ly/3GF18V5.

Charlie's Holdings, Inc. is positioned as the segment leader in the production and sales of alternative products to combustible cigarettes targeting a global market representing hundreds of millions of potential customers. CHUC's popular, diverse offering includes non-combustible nicotine-related products, alternative alkaloid vapor products, and hemp-derived vapor and edible products. The Company's products are sold in nearly 100 countries around the world to select distributors, specialty retailers, and third-party online resellers.

In the Opportunity Research report, analyst Rob Goldman reviews Charlie's Holdings' competitive positioning, strategic and operational inflection points, and the potential future impact of these events on the companies and its combined valuation.

Strong Product Sales Growth in 2023 Could Drive Valuation

Goldman commented, "Our forecasts call for $26.5M in sales for 2022, $44M for 2023 and $75M in 2024, a whopping 41% CAGR. Plus, CHUC is poised to generate meaningful operating income in 2023. Despite this projected sales growth, CHUC trades at less than 1x projected 2022 revenue and 1.8x 2023 projected revenue, major discounts to the Company's peer group."

Investors Overlooking Current Revenue Potential; Focused Only on Future FDA Potential

"In our view, Charlie's Holdings' stock is undervalued relative to its revenue success," noted Goldman. "This is likely due in large part to investors overlooking current growth success and new initiatives and instead focusing only on the potential of an FDA marketing approval for the Company's flavored eliquids and disposable vape products."

Peer Group Valuation Gap Set to Narrow

"Our 6-9-month price target represents 1.8x projected 2023 revenue, a nearly 50% discount to the current 3.4x peer group metric, despite the projected CHUC revenue growth. Looking ahead, we envision CHUC's price/revenue multiple to settle at 3.1x 2024 revenue, essentially in line with the peer group figure. In addition, a series of valuation upside catalysts exist, including a likely stock up-list to a national securities exchange," concluded Goldman.

About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.

Goldman Small Cap Research is not in any way affiliated with Goldman Sachs & Co.

This press release contains excerpts of our most recently published company report on Charlie's Holdings, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from Charlie's Holdings, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.

Separate from the factual content of our update about the Company, we may from time to time include our own opinions about the Company, its business, markets, and opportunities. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.

A Goldman Small Cap Research report, update, newsletter, article, trading alert, corporate profile, sector or industry snapshot, podcast interview, or press release is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed and is to be used for informational purposes only. Please read all associated full disclosures, disclaimers, and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other regulatory agency. A Speculative Buy rating for our covered companies is defined as a company that we believe exhibits the potential to generate outsized returns despite inherent, above-average business, market, or financial risk. To download this research report, or any of our research, view our disclosures and disclaimers, or for more information, visit www.goldmanresearch.com. In 2023, Goldman Small Cap Research (GSCR) was compensated by the Company in the amount of $5000 for research report production and a press release.

CONTACT:

Goldman Small Cap Research
Rob Goldman, Analyst
410-609-7100
rob@goldmanresearch.com

SOURCE: Goldman Small Cap Research

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FAQ

What are Charlie's Holdings, Inc.'s projected revenues for 2023?

Charlie's Holdings, Inc. is projected to generate $44 million in revenue for 2023.

What is the price target set by Goldman for Charlie's Holdings, Inc.?

Goldman Small Cap Research has set a price target of 1.8x projected 2023 revenue for Charlie's Holdings, Inc.

How does Charlie's Holdings, Inc.'s valuation compare to its peers?

Charlie's Holdings, Inc. is currently valued at a discount, trading under 1x 2022 revenue and 1.8x 2023 revenue, compared to a peer group metric of 3.4x.

What is the expected Compound Annual Growth Rate (CAGR) for Charlie's Holdings, Inc.?

The expected CAGR for Charlie's Holdings, Inc. is 41% from 2022 to 2024.