Roth/MKM analysts initiated coverage on Turning Point Brands (NYSE:TPB) with a Buy rating and a $50 price target on the stock.
Turning Point Brands, a prominent player in the nicotine, tobacco, and cannabis markets, is well-positioned to expand its presence in these fast-growing sectors. The company already holds a strong market share in rolling papers, wraps, and moist snuff tobacco, and the analysts see significant potential for TPB to capitalize on the rapidly expanding modern oral category. Additionally, TPB is poised to benefit from its involvement in the alternative channel catering to the $100 billion U.S. cannabis and hemp industry.
The analysts expect the company to see growth in its nicotine pouch offerings and a favorable shift in product mix, driving high single-digit revenue and EBITDA growth by 2026.