Turning Point Brands Inc (NYSE:) stock has reached a 52-week high, hitting a price level of $42.88. This significant uptrend reflects an impressive 1-year change with an 84.64% increase, showcasing the company's strong financial health and positive growth prospects. Investor confidence in TPB's market position has contributed to its robust performance over the past year.
In recent news, Turning Point Brands reported a 7% increase in adjusted EBITDA to over $27 million in Q2, raising its projected 2024 adjusted EBITDA guidance to between $98 million and $102 million. The company's growth was driven by revenue increases in its Zig-Zag brand and the cigar sector, despite a slight decline in the alternative channel.
Additionally, Turning Point Brands retired a $118.5 million convertible note, ending the quarter with over $140 million in cash. The company revised its capital expenditure expectation and anticipates an effective income tax rate of 23% to 26%. Roth/MKM recently initiated coverage of TPB with a Buy rating and a price target of $50, citing the company's potential in the modern oral category and the U.S. cannabis and hemp industry.
InvestingPro Insights
InvestingPro data shows TPB's market capitalization at $756.21 million USD, with an 85.69% total return over the past year. The stock is trading at 99.28% of its 52-week high, indicating a strong upward trajectory. TPB has raised its dividend for 7 consecutive years, showcasing a commitment to shareholder returns and a solid financial foundation.
For a deeper analysis of TPB's valuation and growth prospects, InvestingPro offers 7 additional tips for subscribers to gain valuable insights into the company's performance and potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Analysis: Turning Point Brands Inc has experienced a significant surge in its stock price, reaching a 52-week high. The company's positive financial results and strategic initiatives have led to increased investor confidence and a strong market position. With a focus on growth in key sectors and a commitment to shareholder returns, TPB's performance highlights its potential for future success in the evolving market landscape.
