Canaccord Genuity analyst Susan Anderson maintained a Buy rating on Waldencast Acquisition (WALD – Research Report) yesterday and set a price target of $5.00.
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Susan Anderson’s rating is based on a combination of factors that suggest Waldencast Acquisition has promising long-term growth potential despite recent challenges. The company’s first-quarter results were impacted by supply chain issues and tough year-over-year comparisons, leading to a decline in sales and profitability. However, management remains optimistic about future performance, maintaining their full-year sales and EBITDA guidance, which anticipates acceleration in sales due to new product innovations and expanded distribution.
Despite the short-term headwinds, both of Waldencast’s brands, Milk Makeup and Obagi, continue to demonstrate strong brand demand and robust margins. The company is actively addressing supply chain challenges to improve product availability and responsiveness. Additionally, Waldencast has a more flexible balance sheet following a recent refinancing, which positions it well for future growth. Anderson’s Buy rating reflects confidence in the company’s ability to overcome current obstacles and capitalize on its strong brand positioning and growth opportunities.
According to TipRanks, Anderson is a 5-star analyst with an average return of 16.0% and a 43.09% success rate. Anderson covers the Consumer Cyclical sector, focusing on stocks such as Helen Of Troy, Inter Parfums, and Coty.
In another report released yesterday, Telsey Advisory also maintained a Buy rating on the stock with a $5.00 price target.