FBR Capital Raises Price Target on Turning Point Brands, Inc. (TPB) to $14 After Meeting with Management
- Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty
- Wall St. falls as FBI to review more Clinton emails
- Clinton email problem resurfaces as FBI announces review
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
FBR Capital reiterated an Outperform rating on Turning Point Brands (NYSE: TPB), and raised the price target to $14.00 (from $13.00), after meeting with management. Management indicated that Stoker's has maintained its 2.5% share of the growing moist snuff market over the past ~4 months, and the business continues to grow via word of mouth and advertising. Management also indicated that TPB has accumulated numerous unsolicited offers to buy businesses and is in the process of reviewing them.
Analyst Susan Anderson commented, "We recently hosted upbeat meetings with CEO Larry Wexler, CFO Mark Stegeman, and SVP of Business Planning Jim Murray. Our meetings reaffirmed our fundamental thesis remains intact—that TPB is a unique opportunity in tobacco, driven by rare growth in the stable OTP industry; exposure to high-growth new era forms of tobacco; and stable, solid FCF generation. Additionally, management indicated that acquisition opportunities remain plentiful. As a result, we remain confident TPB is well positioned to expand via accretive acquisitions, and its leverage ratio (~4.1x at 2Q-end) should continue to narrow closer to management's target (2.5x to 3x) as we expect cash flow and EBITDA to increase due to the new capital structure and growth catalysts. We continue to like TPB's asset-light sourcing and marketing model, which allows the company to more efficiently alter product offerings, enter new OTP markets, and maintain lower capital expenditures, and growth opportunity in the OTP industry. We reiterate our Outperform rating and raise our price target to $14 from $13."
Shares of Turning Point Brands closed at $12.43 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Raises Price Target on Wex, Inc. (WEX) Following 3Q Report
- Argus Downgrades Tractor Supply Company (TSCO) to Hold
- Amazon (AMZN) PT Raised to $1250 at Susquehanna
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!