Charlotte’s Cannabis Health Stock Could See an Upside

Charlotte’sCharlotte’s Web Holdings Inc. (OTC: CWBHF) is a Colorado-based health and wellness company that specializes in cannabinoid treatments derived from hemp and cannabis. This company is likely to benefit from the long-term expansion of legal cannabis use and the associated increased acceptance of CBD health products. With a bargain stock, it’s worth considering as a cautious investment in 2021.

Charlotte’s Web is the leading supplier of CBD health products in North America. With the Biden Administration and a liberal House and Senate majority, the regulatory environment for hemp and cannabis-derived products is likely to improve. While speculative, it appears that the conditions are aligning for this stock to grow.

Total revenue for the company increased to $25.2 million in the most recent quarter, a sequential jump of 17%. eCommerce sales were particularly strong, increasing 27.5%. The company reported $65.9 million in cash and similar assets in September, along with $128.6 million of working capital. It’s in a good position to weather any regulatory or competitive hurdles that could appear in the short-term.

With a high-end target price of $7.62, there could be strong returns for investors who buy in 2021.

Key Data:

  • 1 Year Price Growth: -10.32%
  • YTD Price Growth: 31%
  • 3 Month Price Growth: 18%

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