22nd Century price target lowered to $7.50 from $10 at Dawson James

Dawson James analyst James McIlree lowered the firm’s price target on 22nd Century to $7.50 from $10 and keeps a Buy rating on the shares. The company’s Q2 revenue exceeded estimates, but gross margin was lower than forecast and operating expenditures higher than estimated, the analyst tells investors in a research note. The firm, however, expects 22nd’s “extremely low valuation” to expand as its operations improve. It finds the valuation compelling at current share levels.