This Analyst Cuts ChromaDex's Price Target On Revised Growth Trajectory

  • Earlier this month, ChromaDex Corp CDXC released Q2 earnings, indicating high single-digit revenue growth for FY22, driven by its global e-commerce business, offset by slower growth with new and existing partners. 
  • For FY22, the company expects approximately 60% gross margin, while selling and marketing expenses should be down as a percentage of net sales. 
  • ChromaDex also expects to report a roughly $1 million Y/Y increase in R&D and approximately a $6-7 million decrease in G&A expense, driven by lower legal expenditures. 
  • HC Wainwright says that focusing on the e-commerce business and pivoting away from expensive sales channels should make operations more efficient but notes that the revenue growth trajectory may be slower than initially anticipated. 
  • The analysts expect FY22 sales of $74 million, growing to $100 million in 2023, vs. the $80.3 million and $110 million initially expected.
  • HC Wainwright reiterates the Buy rating while modulating the price target to $5.50 from $7. 
  • The analysts also see the company approaching cash flow break-even in 3Q22 and be cash flow break-even or better in 4Q22.
  • Price Action: CDXC shares are down 1.01% at $1.465 on the last check Monday.
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