In a recently released analyst research report, Chardan Capital Markets, LLC‘s Senior Research Analyst of Industrial and Consumer Technology, James McIlree, CFA, just reiterated his buy rating on shares of 22nd Century Group Inc. (NYSE:XXII) with a sky-high twelve-month price target.
James McIlree’s new price target of $11.50 USD per share implies a potential upside of approximately 492.78% based on the last traded price of $1.94 USD on the NYSE. The price target of $11.50 “is based on the company garnering royalty revenue for its technology on 10% of the US market share in the next five years, discounted at a 20% annual rate.
While the analyst’s update was largely based on bullish catalysts for 22nd Century Group’s low nicotine tobacco division, many of its shareholders bought in as a result of its hemp division. Therefore, his update was worth mentioning as McIlree’s coverage of the company has been known to move shares of XXII.
According to McIlree’s update, “22nd Century shares rose Thursday in response to testimony from Health and Human Services Secretary Alex Azar to the Senate Finance Committee that indicated support for departing FDA Commissioner Scott Gottlieb’s nicotine and tobacco agenda.”
The research report continued, stating that, “There is tremendous institutional momentum in the FDA’s decade’s long due to the Government shutdown and now Gottlieb’s resignation, we expect the process to move forward this year.”
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