CV Sciences Analyst Remains Bullish On CBD Company Despite Q4 Miss

CV Sciences Inc CVSI reported fourth-quarter results Monday that fell short of expectations and issued disappointing first-quarter guidance, according to Cantor Fitzgerald. 

An analyst from the firm said CV Sciences has several plans to boost its topline, and a brand refresh and increased marketing efforts could help its long-term prospects. 

The CV Sciences Analyst

Pablo Zuanic maintained an Overweight rating on CV Sciences and reduced the price target from $1.60 to 80 cents.

The CV Sciences Takeaways 

CV Sciences missed expectations for sales and earnings in the fourth quarter, and its first-quarter guidance reflects a sharp decline in sales, Zuanic said in a Tuesday note. (See his track record here.)

The company’s sales fell 26% in the fourth quarter after a 25% decline in the previous quarter, the analyst said. The low-end of the sales guidance range implies a further 35% decline, he said. 

Sales at CV Sciences were hurt by stiffer competition in its core natural specialty channel, while e-commerce also declined sequentially, Zuanic said.

Sales in the food/drug/mass channel were not boosted by repeat business, the analyst said. 

The company has plans to boost sales and earnings in 2020 and intends to seek new doors and channels going forward, he said. 

Cantor's bullish rating “is a more of long term buy stance,” Zuanic said. 

CV Sciences Price Action

Shares of CV Sciences were down 25.96% at 35 cents at the time of publication Tuesday.

Related Links: 

The Week Ahead In Biotech (March 8-14): Bristol-Myers Awaits FDA Nod For Liver Cancer Combo Therapy, Earnings Flow Continues

Stocks That Hit 52-Week Lows On Friday