22nd Century downgraded to Market Perform from Outperform at TD Cowen

TD Cowen analyst Vivien Azer downgraded 22nd Century to Market Perform from Outperform with a price target of $2.50, down from $5, following the Q2 report. While the company’s hemp and cannabis revenues exceeded expectations and the segment is showing a pathway to positive gross margin, the outlook for VLN cigarettes and the broader tobacco segment “remains murky,” the analyst tells investors in a research note. The firm says that while 22nd Century’s cost-cutting announcement is a positive, better cigarette visibility is needed to get constructive on the shares.