Street Calls of the Week
Investing.com - Roth/MKM initiated coverage on GrabAGun Digital Holdings (NYSE:PEW) with a Buy rating and a price target of $8.25 on Thursday. The stock, currently trading at $5.55, has seen significant pressure recently, falling 48% over the past six months. With a market capitalization of $366 million, InvestingPro data shows the company generated revenues of $91 million in the last twelve months.
The research firm expects the newly public company to gain market share in the fragmented shooting sports industry, outperforming current soft industry trends as brand awareness increases.
Roth/MKM highlighted that secular trends toward online purchasing in the firearms market will benefit GrabAGun’s business model and drive growth.
The firm also noted that the shooting sports industry appears ready for consolidation following a multi-year period of softness after the COVID pandemic.
GrabAGun’s substantial cash reserves, approximately $4 per share according to Roth/MKM, position the company to potentially capitalize on acquisition opportunities in the consolidating market.
In other recent news, GrabAGun Digital Holdings Inc. has made significant strides in its business operations. The company began trading on the New York Stock Exchange under the ticker symbols PEW and PEWW, securing over $179 million in gross proceeds from its public listing. After accounting for secondary proceeds and transaction expenses, approximately $119 million remains, which GrabAGun intends to use for expanding its online platform and pursuing strategic acquisitions. Additionally, the company announced the appointment of Sina Azmoudeh as Chief Marketing Officer, a new position created to enhance its marketing operations. Azmoudeh brings nearly two decades of experience in marketing leadership across various industries. In legal developments, a federal appeals court ruled that California’s ammunition background check law is unconstitutional, a decision that aligns with GrabAGun’s interests. The Ninth Circuit Court of Appeals found the law violated the Second Amendment in the case Rhode v. Bonta. These recent developments highlight GrabAGun’s ongoing efforts to strengthen its market presence and adapt to legal changes.
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