Maxim Group Downgrades New Age Beverages Corp (NBEV) to Hold; 'Significant Rise in Stock Price Not Based on Fundamentals'

Maxim Group analyst Anthony Vendetti downgraded New Age Beverages Corp (NASDAQ: NBEV) from Buy to Hold.

The analyst cited:

• NBEV's market price has significantly exceeded our prior $3 price target, which we derived using a 10-year DCF analysis and comparative valuation, due to a substantial run up in share price that is not based on fundamentals, in our opinion. Therefore, we would not initiate any new positions in the stock at this time.
• Yesterday, NBEV announced it expects to debut its portfolio of cannabidiol (CBD) infused beverages at the North American Convenience Store (NACS) show.
• According to a report from BNN Bloomberg published on September 17, 2018, Coca-Cola Co. (KO - NR) is closely eyeing the cannabis market and is potentially looking to develop a CBD-infused beverage.
• On August 24, 2018, NBEV completed a $9.5M equity offering at $1.28 per share. This also unlocked a new asset-based credit facility with Siena Lending Group.

For an analyst ratings summary and ratings history on New Age Beverages Corp click here. For more ratings news on New Age Beverages Corp click here.

Shares of New Age Beverages Corp closed at $9.51 yesterday.

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