ChromaDex stock price target raised to $11 by H.C. Wainwright
Investing.com
Published Mar 10, 2025 08:31AM ET
On Monday, H.C. Wainwright & Co. updated its outlook on ChromaDex Corp (NASDAQ:CDXC), increasing the price target to $11.00 from the previous target of $8.00. The firm maintained a Buy rating on the stock. The adjustment follows ChromaDex's recent announcement of its fourth-quarter and full-year financial results for 2024.
ChromaDex reported a 37% increase in total net sales year-over-year, attributing the growth primarily to its TRU NIAGEN product sales, which soared particularly in e-commerce, and to food-grade NIAGEN ingredient sales. TRU NIAGEN, the company's flagship product, contributed $22.7 million to the top-line revenue, which reached $29.1 million, surpassing H.C. Wainwright's forecast of $28 million. The company maintains strong financial health with a current ratio of 3.57 and operates with minimal debt, as indicated by its low debt-to-equity ratio of 0.06.
The company also demonstrated an improvement in its financial health, with adjusted EBITDA rising to $3.4 million from $1.3 million in the comparable period the year prior. ChromaDex's earnings per share were reported at $0.09, which notably outperformed the analyst's estimate of $0.04 per share. InvestingPro analysis reveals 15+ additional insights about ChromaDex's performance and valuation, available in the comprehensive Pro Research Report.
Looking forward, H.C. Wainwright has set ChromaDex's full-year sales forecast for 2025 at $118 million, slightly lower than the previous $122 million estimate. However, the firm has introduced a new sales estimate for the full-year 2026 at $145 million. The revised price target reflects a decrease in the discount rate from 11% to 10% and incorporates a faster sales ramp expected from new product lines, as well as higher revenue multiples, now at 7.9x compared to the previous 5.8x, within the analyst's comparable universe. Currently trading at a P/E ratio of 67.4x and an EV/EBITDA multiple of 65.4x, InvestingPro analysis suggests the stock is trading above its Fair Value.
In other recent news, ChromaDex Corporation reported a strong performance for the fourth quarter of 2024, surpassing earnings expectations. The company achieved an earnings per share (EPS) of $0.09, significantly higher than the forecasted $0.02, and reported revenues of $29.1 million, exceeding the anticipated $26.78 million. This robust financial performance reflects a 37% year-over-year increase in revenue, with a full-year net revenue of $99.6 million, marking a 19% growth compared to 2023. ChromaDex ended the year with $44.7 million in cash and no debt, highlighting its financial strength and operational efficiency.
Looking forward, ChromaDex has projected an 18% revenue growth for 2025, with modest improvements in gross margins. The company plans to invest in research and development, focusing on new product formulations and potential pharmaceutical applications. Additionally, a corporate rebranding is on the horizon, alongside a potential spin-off for drug development. Analysts have shown confidence in ChromaDex's growth prospects, with firms like Sturdivant and Canaccord Genuity participating in the earnings call and expressing interest in the company's strategic direction.
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Furthermore, the company is addressing challenges such as supply chain issues and market fraudsters. ChromaDex's CEO, Rob Fried, emphasized the importance of consumer safety and product excellence, while CFO Ozan Pamir highlighted the company's focus on operational excellence and fiscal discipline as key drivers of success.
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Written By: Investing.com
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