NBEV Stock Price Target
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The New Age Beverages Corporation (NASDAQ: NBEV) was formerly known as American Brewing Company Inc. It was registered in the US in 2010. This company is headquartered in Torrance, CA., they produce malt and non-alcoholic drinks, as well as functional medical beverages. The business activity of New Age Beverages is based on science and innovation in the FMCG industry.
The market capitalization of NBEV shares is approximately $337 million. The company features fairly reasonable activity on exchanges, while stocks of companies associated with the production of marijuana can easily exceed their real value by 50 times. Due to increased demand in shares of marijuana producers at the beginning of this year, many traders started to buy these stocks actively near their maximum prices. So, those who already bought them near the highs may now potentially suffer significant losses, due to the NBEV stock price target decreasing from $8 in January 2019 to the current price of $4.58.
Is It Profitable to Invest in NBEV Stocks?
If you are scouting stocks with good potential returns in the mid and long-term period, NBEV stock can be a profitable investment option. When it comes to short term operations, marijuana stocks are mainly oversold and over-hyped. The short squeezes started earlier in the year when traders had to buy at a higher price to cover previously short stocks. This resulted in several purchases that were not based on the fundamentals. However, our NBEV stock analysis shows that the NBEV stock price target may increase from $4.58 to $5.00 by the end of this year.
According to many NBEV stock forecasts, a long-term increase of NBEV stock price target is highly probable. New Age Beverages Corporation stocks are considered a good 1-year investment since these stocks are expected to reach $10 in 2020. A 5-year investment in NBEV may give revenue of about +115%. So, the profitable concept would be slowly accumulating the major marijuana stocks at competitive prices and combining this activity with short-term trades on their volatility. After all, marijuana has a promising long-term future.
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What Is the NBEV Stock Price Target?
Since the beginning of the year, NBEV stocks declined until recently. Average statistics related to their share price indicates $8.50 as a median target for NBEV stocks, along with $11.00 as a high estimate and $8.00 as a low one. The current price being $3.96, the median estimate is expected +114.65% in 12 months. However, the current NBEV stock price target predictions imply the steady rates without significant moves in the coming few months.
Many recognized analyst agencies are optimistic in relation to the outlook for NBEV stocks. So, Roth Capital assumes that the NBEV stock price target will be $11.00, and Compass Point gives it $9.00. Both agencies admit that given the level of volatility of these stocks, it will not be a major surprise if they manage to double in price this year.
Will the NBEV Stock Price Drop?
At present, no price drop of NBEV stocks is expected according to the NBEV stock analysis. However, if you take into account that most of the NBEV income comes from non-CBD drinks, and this is a relatively small and crowded niche. More importantly, New Age Beverages is still in its early stages of development, and its prospects for growth in the CBD market are not very clear. Presently, other cannabis companies outlook is much better than NBEV in comparison and probably have better investment opportunities. So, traders should patiently wait for the right signals as to when NBEV stocks should be bought and not base their assumptions on technical analysis.