Charlotte’s Web stock initiated with Overweight rating by Zuanic & Associates

Investing.com - Charlotte’s Web Holdings (OTC:CWBHF) has received an Overweight rating from Zuanic & Associates as the research firm initiates coverage on the CBD company.

Charlotte’s Web shares have surged 80% since September 26, 2025, when President Trump reposted a video from The Commonwealth Project on Truth Social that endorsed hemp-derived CBD benefits, according to Zuanic & Associates. The presidential post even suggested potential Medicare coverage and called for FDA standards to regulate CBD.

The research firm notes that Charlotte’s Web is adapting to challenging market conditions through product innovation, revamping its direct-to-consumer online platform, and targeting $9 million in gross cost savings. These cost-saving measures are expected to make the company cash flow positive as it exits 2026. InvestingPro analysis shows the company maintains a healthy current ratio of 3.83x, though it operates with significant debt and negative free cash flow of -$17.35 million in the last twelve months. Get access to 10+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

Zuanic & Associates sees approximately 80% upside potential by December 2026 based on 1.5 times projected 2027 EV/sales figures, assuming the regulatory status quo for CBD remains unchanged. The firm also highlights additional stock optionality from Charlotte’s Web’s partnership with BAT, investments in cannabinoid biopharma, and the company’s industry prestige.

The research firm emphasizes that federal regulation clarity for CBD would be the main catalyst for the stock, estimating that if CBD were classified as a dietary supplement, the market could grow fivefold and Charlotte’s Web could see potential upside of 17 times current levels.

In other recent news, Charlotte’s Web Holdings Inc. reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company missed earnings per share (EPS) forecasts with an actual EPS of -$0.04, compared to the anticipated -$0.03. However, Charlotte’s Web exceeded revenue expectations, reporting $12.8 million, which represents a 15.73% surprise over the projected $11.06 million. Additionally, the company announced plans to establish a Scientific Advisory Board to guide its medical strategy and research initiatives. This board will focus on shaping the company’s research agenda and clinical initiatives. The aim is to translate botanical science into patient-centered solutions. These developments reflect Charlotte’s Web’s ongoing efforts to enhance its research and development capabilities.

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