Category: Consumer

Commercial Vehicle Group, Inc. (CVGI) – A Business Transformation

Posted on by cpereira@noblefcm.com


Thursday, December 01, 2022

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiation. We are initiating research coverage of Commercial Vehicle Group, Inc. (CVG) with an outperform rating and a $10.00 price target. CVG is in the midst of a business transformation to drive top line revenue and overall margin improvements, with a goal of doubling revenue and increasing adjusted operating margin by 300 basis points by the 2025-2027 time frame.

Attractive End Markets. Long-term prospects for CVG’s key end markets are attractive. Demand for class 8 trucks exceeds supply and, with an aging fleet, is likely to continue. The ongoing switch to electric vehicles is opening a massive opportunity for CVG. And while the warehouse automation vertical is currently challenging, longer term we expect to see significant growth. 


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Lifeway Foods (LWAY) – Record Results for the Third Quarter; Raising to Outperform

Posted on by cpereira@noblefcm.com


Wednesday, November 16, 2022

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q22 Results. Lifeway reported record top line for the third quarter with sales up 29.1% y-o-y to $38.1 million. Price and volume in the core kefir product drove the top line results. Kefir unit volumes increased double digits in the quarter. Net income for the quarter totaled $983,000, or $0.06 per share, compared to $480,000, or $0.03 per share last year. We had forecast revenue of $33.5 million and net income of $215,000, or EPS of $0.01.

New Distribution. Management continues to pick up new accounts. Most recently convincing Food Lion to switch to Lifeway branded kefir from an unbranded product, and adding the 975 store Wawa convenience chain in the mid-Atlantic states and the 106 location Plaid Pantry convenience chain serving the Pacific Northwest. These new accounts should help Lifeway to continue to post top line growth.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FAT Brands Inc. (FAT) – A Switch to an ATM Raise

Posted on by cpereira@noblefcm.com


Tuesday, November 15, 2022

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Proposed Equity Offering. Monday morning, FAT Brands announced an ATM sales agreement to raise a maximum $21.4 million through the sale of Class A common stock and/or the 8.25% Series B Cumulative Preferred. At Friday’s close, a full raise in common would add just under three million shares to the public float.

A Switch. The proposed ATM is a switch from the Class A equity offering floated by the Company just 10 days ago. That offering was tabled after the shares sold off some 17% over the weekend. Under the ATM, FAT can decline to sell shares if the shares cannot be sold at or above a price designated by the Company, which we believe is above $7.00 per share.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Kandi Technologies Group, Inc. (KNDI) – Kandi results move to the positive on shift to off-road vehicles

Posted on by cpereira@noblefcm.com


Wednesday, November 09, 2022

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Kandi reports positive earnings. 2022-3Q net income was $1.1 million or $0.01 per share up from ($7.9 million) or ($0.10) and surpassing our ($2.4 million) or ($0.03) estimate. Positive results reflect improved results for off-road vehicles (UTVs, Golf Carts, etc.). Off-road vehicles reported revenues of $21.7 million versus $6.8 million last year and our $7.5 million estimate. Kandi began emphasizing off-road vehicles last spring. Kandi golf carts can now be found at Lowes Corporation in addition to licensed dealers. The company continues to develop new models including cross over UTV-golf cart vehicles.

Positive net income comes despite operating income losses. Operating income for the third quarter was ($2.2 million) versus ($9.0 million). The difference between operating income and net income can be explained by positive interest and other income as well as negative tax expense. The company reported $210 million in cash or approximately $2.75 per share at the end of the quarter positively contributing to interest income. The company believes it is prudent to maintain a large cash position to fund research and development as markets develop. That said, it has authorized a share repurchase program which we believe it will utilize if its share price drops below $2.50 per share.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

ACCO Brands (ACCO) – Post Call Commentary

Posted on by cpereira@noblefcm.com


Wednesday, November 09, 2022

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Lots of Positives.  A solid back-to-school sell-through in North America, increased market share, a rebound in sales of commercial products, double digit growth in the Kensington brand and computer accessories category, the International segment up over 30% on a comp basis, and growth for gaming accessories in the EMEA and International regions.

But a Tough Environment. Significant high inflation, war in Ukraine, the current energy crisis, and the stronger U.S. dollar, are causing retailers to be cautious on inventory replenishment and impacting consumer sentiment. Lower sales volume has resulted in stranded fixed costs in manufacturing facilities.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

ACCO Brands (ACCO) – A First Look into 3Q 2022

Posted on by cpereira@noblefcm.com


Tuesday, November 08, 2022

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q 2022 Results. Net sales totaled $485.6 million, a decline of 7.8% over last year’s $526.7 million, with comparable sales falling 2.1%. We had estimated revenue of $484.0 million. Net loss was at $68.7 million, or ($0.73) compared to net income of $20.2 million, or $0.21 per share. Adjusted EPS was $0.25 versus $0.33 last year. We had estimated net income of $24.6 million, or $0.18 per share, and adjusted EPS of $0.26. Results were in-line with the October 13th revised guidance.

Revenue Segments. North America sales decreased 10.0% to $257.2 million from last year’s $287.5 million. Adjusted operating income decreased to $25.8 million from $41.6 million. EMEA comparable sales decreased 4.1% to $154.4 million, with adjusted operating income of $7.4 million, down from $17.3 million last year. International comp sales rose to $102.6 million from $78.1 million, or 31.4%, with adjusted operating income of $19.2 million from $9.8 million.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FAT Brands Inc. (FAT) – Round Table and Fatburger Expanding in Texas

Posted on by cpereira@noblefcm.com


Friday, November 04, 2022

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A Large Deal. Yesterday, FAT Brands announced a new development deal that will open 80 new franchised locations in Texas. In a partnership with Brame Holdings LLC, 40 Round Table Pizza restaurants and 40 co-branded Fatburger and Buffalo’s Express locations will open over the next 10 years, with the first opening in 2023.

Who is Brame Holdings LLC? Brame Holdings is an experienced fine dining operator located in San Antonio, Texas. The firm’s reason for the deal is to expand on the existing portfolio with the addition of fast casual/quick-service concepts. FAT Brands believes Brame has the capital and experience to quickly develop and open new Round Table Pizza and Fatburger and Buffalo’s Express locations in Texas.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

1·800·Flowers.com, Inc. (FLWS) – Margin Outlook Improves

Posted on by cpereira@noblefcm.com


Friday, November 04, 2022

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fiscal Q1 exceeds expectations. The company reported fiscal Q1 revenue of $303.6 million, 2.4% above our forecast of $296.5 million. Stronger revenues in Gourmet Food & Gift Baskets accounted for the largest upside revenue variance. Adj. EBITDA loss of $28.7 million was better than our forecast of a loss of $34 million.  

Segment contributions. Revenue was bolstered by 11% growth in the Gourmet Food & Gift Baskets segment, reflecting the Vital Choice acquisition last year, which benefited the quarter by roughly $5 million. The Adj. EBITDA upside was driven by better-than-expected margins in the Consumer Floral and BloomNet segments. Management anticipates that margins should improve in the second half due to moderating labor, ocean freight and shipping costs.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.