Goldman Small Cap Research Publishes New Research Report on AMMO, Inc

Rhea-AI Summary

Goldman Small Cap Research has released a new report on AMMO, Inc. (NASDAQ:POWW), highlighting its strong positioning as a top U.S. munitions producer. The report discusses potential operational efficiencies from a new facility, projected sales growth to military and law enforcement, and a controversial management proposal to separate its munitions and marketplace businesses. The report sets a price target based on projected revenue of $300M and adjusted EBITDA of $108M for FY23. This creates an attractive entry point for investors amid a pending proxy battle.

Positive

• AMMO is positioned in the top 5 munitions producers in the U.S.
• Projected revenue of $300M and adjusted EBITDA of $108M for FY23.
• New facility in Wisconsin expected to enhance operational efficiencies.
• Access to over 10,000 retail locations to increase sales.

Negative

• Proposed separation of businesses has led to a pending proxy battle.

BALTIMORE, MD / ACCESSWIRE / November 7, 2022 / 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 AMMO, Inc. (NASDAQ:POWW), a leading vertically integrated producer of high-performance ammunition and components, and the owner of the largest online marketplace serving the firearms and shooting sports industries. The 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/3TsUg0F.

Headquartered in Arizona, AMMO, Inc. designs and manufactures products for a variety of aptitudes, including law enforcement, military, sport shooting and self-defense. AMMO promotes branded munitions as well as its patented STREAK™ Visual Ammunition, /stelTH/™ subsonic munitions, and specialty rounds for military and law enforcement use. AMMO also owns GunBroker.com, the largest online marketplace dedicated to firearms, hunting, shooting and related products. These include firearms, ammunition, air guns, archery equipment, knives and swords, firearms accessories and hunting/shooting gear online.

In the Opportunity Research report, analyst Rob Goldman reviews upcoming strategic and operational inflection points, milestones, a proxy fight, and the potential future impact of these events on the Company and its valuation.

Overlooked Positioning, Growth Opportunities to Drive Valuation

Goldman commented, "AMMO is positioned as one of the top 5 munitions producers in the nation. The Company leverages its IP and design approach to produce in-demand premium, branded ammunition and ammunition components for use by law enforcement, military and individuals. AMMO's core business leverages unrivaled market demand and is poised to generate sales and profit margin growth. The Company can produce billions in munitions and components annually and is positioned to broaden its standing via its access to 10,000+ retail locations.

"In addition to enjoying future operational efficiencies due in part to its new, start-of-the-art facility in Manitowoc, Wisconsin, AMMO should increase sales to military, and law enforcement agencies in the US and abroad in FY23. Separately, AMMO owns the largest online auction marketplace for firearms, shooting and related products with 7M+ users and 25,000 FFL partners. A popular online platform with a 20-year history, this unit generates enviable EBITDA."

Potential Business Separation, Impact, and Forecasts

"Management has proposed a separation of the munitions and marketplace businesses into two public entities whereby shareholders would own one share of each firm. This proposal has been met with controversy and a pending proxy battle. We believe this current situation and potential outcomes have created an attractive entry point for opportunistic investors that seek to take advantage of potential, future inflection points. Moreover, regardless of the separation resolution, we believe that our six-twelve month price target reflects a reasonable sum of the parts EBITDA multiple valuation based on management's combined $300M revenue and $108M adjusted EBITDA guidance for FY23," noted 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 AMMO, 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 AMMO, 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 2022, Goldman Small Cap Research (GSCR) was compensated by a third party in the amount of $4000 for a 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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https://www.accesswire.com/724191/Goldman-Small-Cap-Research-Publishes-New-Research-Report-on-AMMO-Inc

FAQ

What is the latest research report on AMMO, Inc. (POWW)?

Goldman Small Cap Research has published a report focusing on AMMO's market position and future growth opportunities.

What are the financial projections for AMMO, Inc. (POWW) in FY23?

The report projects $300M in revenue and $108M in adjusted EBITDA for AMMO in FY23.

What challenges is AMMO, Inc. (POWW) currently facing?

AMMO is dealing with a proxy battle linked to its proposed separation of munitions and marketplace segments.

How does AMMO, Inc. (POWW) rank in the munitions industry?

AMMO is ranked among the top 5 munitions producers in the United States.

What recent developments could affect AMMO, Inc. (POWW) stock?

Operational efficiencies from a new facility and strategic sales growth are key developments that could impact the stock.