UPDATE: H.C. Wainwright Upgrades The Alkaline Water Co. (WTER) to Buy
- Wall Street surges to all-time closing high on earnings, economic revival
- Was Intel's (INTC) Second Quarter a Speedbump or Inflection?
- Twitter (TWTR) Gains After Beating Q2 Estimates, Analysts Raise PTs as Brand Recovery Accelerates
- U.S. dollar on track for second week of gains; Fed meeting in focus
- Snap (SNAP) Surges 17% After Smashing Q2 Views Across the Board to Yield a Dozen Price Target Hikes
H.C. Wainwright analyst Kevin Dede upgraded The Alkaline Water Co. (NASDAQ: WTER) from Neutral to Buy, PT $3.00.
The analyst comments "The Alkaline Water Company Thursday reported $12.1M, up 52% YoY, for its 4Q20 (March year end) versus our $9.9M estimate and 3Q20's (Dec. '19) $8.5M. The chart on the bottom left here again illustrates Mr. Market's clairvoyance, while we stubbornly had demanded—now past tense—proof; see page 3 of this note dated May 20, CBD Ingestibles on Their Way; Reit Neutral. Certainly, one quarter does not a trend make, but in light of all the new products and formats Alkaline Water has attacking the market in concert with the company's increased breadth of distribution, we see only foolishness in continued feet dragging before submitting to dogmatic investment positivity. With that as the brisk backdrop, we are raising our rating to Buy from Neutral while resetting, albeit conservatively, our price target to the original $3 offered in our August 28 initiation, Fizzled Soda's Replacement: Cool Water—Have a Sip for Taste, Refreshment, and Controversially, Health; Init Buy, $3 PT. Our defensive stand is fair, we think, on the heels of Alkaline Water's partial year-end release where only sales, cost of goods, per share loss, and cash balance were offered; the full year-end figures are not expected until mid-August, quite late for a March filer. The circumstances behind the again extended delay—Alkaline Water initially promised to report mid-June—were not made clear. Further, first quarter (1Q21) ended June 30, and the company expects to present to the investment community in 2-3 weeks' time. At that point, we should see Alkaline Water's full-year 2021 sales expectations—in the surrounding debate on the issuance of guidance topic, we support the bullish camp given the random mask-off, mask-on again national retail environment—where many other consumer product goods companies and retailers, for that matter, are keeping mum regarding outlook; we had fully expected that here."
Shares of The Alkaline Water Co. closed at $2.34 yesterday.
You May Also Be Interested In
- UPDATE: Citi Upgrades Monster Beverage (MNST) to Buy
- UPDATE: Talkspace (TALK) on Watch on Chatter
- JPMorgan Upgrades Cabot Corp. (CBT) to Overweight
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesH.C. Wainwright
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!