AMMO, Inc. (POWW) Closes Gunbroker Acquisition Leading to Positive Catalyst When Guidance is Updated on 5/11 - Roth Capital

May 4, 2021 7:55 AM EDT
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Price: $7.92 +7.32%

Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 13 | New: 24
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Roth Capital analyst Matt Koranda reiterated a Buy rating and $9.00 price target on AMMO, Inc. (NASDAQ: POWW) after the company announced the close of its GunBroker.com acquisition, reflecting a $240mn purchase price for GunBroker.com and a ~6.0x EBITDA multiple (on 2020 revenue/EBITDA of $60mn/$40mn).

Management expects to provide an update to F2022 guidance on 5/11/21 and the analyst expects this to be a catalyst. He stated "We view the acquisition of GunBroker.com as transformative to AMMO Inc. GunBroker.com provides AMMO Inc. with: (a) a relatively stable source of cash flow that is not directly tied to the primary ammo/firearms market (primary market tends to be more cyclical, based on our understanding of the overall industry); (b) an online channel for direct-to-consumer ammunition sales (GunBroker.com has transacted with >6mn registered users during its lifecycle); and (c) additional paths for monetization over time (bringing payments in-house, providing financing options, etc.)."

For an analyst ratings summary and ratings history on AMMO, Inc. click here. For more ratings news on AMMO, Inc. click here.

Shares of AMMO, Inc. closed at $7.16 yesterday.



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