Analyst Coverage And Record Q3 Financials Could Provide Nasdaq Profile (TBLT) With A Vertical Jolt
Maxim Group Provides $2.50 Price Target
Barchart Reports "100% BUY" In The Short Term
The opening bell just rang so we need to dive in quickly...
The future of the global construction industry looks good with opport*unities in residential, non-residential, and infrastructure.
According to Research and Markets, the global construction industry is expected to reach an estimated $10.5Tn by 2023, and it is forecast to grow at a CAGR of 4.2% from 2018 to 2023.
Because of this expected growth, this company could take a major advantage as its products can be necessary components in the success of construction in the large, medium, and small scales.
For these reasons and more that I'll highlight in my report, there is only one Nasdaq profile to have on your radar today:
*ToughtBuilt Industries, Inc. (TBLT)*
ToughBuilt is a leading designer, manufacturer and distributor of innovative tools and accessories to the building industry. They market and distribute various home improvement and construction product lines for both the professional and DIY markets under the TOUGHBUILT® name.
And in November of 2020, Maxim Group upped their analyst price target for TBLT.
#1. TBLT Potential Catalyst - Analyst Price Target
After an in-depth analyst of TBLT, Maxim Group upped their previous $2 price target to a new $2.50 target while reiterating a "Buy" status on this profile.
Here is the summary and key details of their report:
- 3Q20 beats across the board as solid segment sales drive total revenue up 248% y/y and positive GAAP net income.
- Previously announced major partnerships, including Lowe's, are likely to serve as a significant sales catalyst for ToughBuilt.
- We raise estimates despite continued uncertainty due to extended impact from CV-19, but we remain confident in the company’s near-term growth initiatives.
- Given the recent $20M+ public offering of common shares and warrants in June, we do not believe TBLT will require additional capital in the foreseeable future.
- TBLT is up 14% QTD, but down 60% YTD; with shares trading at 0.4x our increased 2021 revenue estimate vs. peers at 2.0x, we reiterate our Buy rating and increase our price target to $2.50, from $2, representing 1.5x our 2021 revenue estimate.
We expect previously announced partnerships with Lowe's and Tractor Supply to serve as a significant sales catalyst in 4Q and 2021. On April 9, ToughBuilt announced that Lowe’s awarded a portion of its soft-sided tool storage business and all of its kneepad business to ToughBuilt. The arrangement is expected to include 30 SKUs and amount to $22.7M in revenues over the first 12 months following initial launch, which we believe started shipping in September 2020; products will be sold at Lowe’s nationwide store locations and online. Lowe’s is a Fortune 50 company with 2,200 physical store locations across the United States and Canada. Separately, on May 12, ToughBuilt announced a new partner w-i-n with Tractor Supply Company (private), which is expected to result in the immediate placement of 81 TBLT product SKUs. Tractor Supply Company is considered the largest operator of rural life.
Read the full report here.
From Friday's close of $1.26, this new price target provides TBLT with upside potential of 98%.
Now, I'm not saying TBLT is going to go rocketing to those levels today, but you need to be aware of the potential upside that Maxim Group is tagging this profile with.
#2. TBLT Potential Catalyst - Record Q3 Results
ToughBuilt™ Announces Record Third Quarter 2020 Results
Lake Forest , Calif, Nov. 09, 2020 (GLOBE NEWSWIRE) -- ToughBuilt Industries, Inc. (“ToughBuilt®” or the “Company”) (NASDAQ: TBLT; TBLTW) announced today its unaudited results for the third quarter and nine-months ended September 30, 2020.
Operating Results for the Three Months Ended September 30, 2020
- Net sales for three-month period ended September 30, 2020 were $16.6Mn, an increase of 248% from $4.7Mn for the same period in 2019.
Operating Results for the Nine Months Ended September 30, 2020
- Net sales for the nine-month period ended Sept 30, 2020 were $27.4Mn, an increase of 88% from $14.5Mn for the same period in 2019.
- Gross pro-fit increased by 203% to $11.6Mn in the nine months ended Sept 30, 2020, from $3.8Mn for the same period in 2019.
Michael Panosian, ToughBuilt’s Chief Executive Officer, commented, “ToughBuilt delivered record [...] results across the board, despite the CV-19 pandemic impacting the industry globally. I am proud of our tough team and grateful to all retail partners, international manufacturers and global distributors for their ama*zing support and efforts. We continue to navigate today’s complex business landscape and are encouraged to implement more development and growth in all Markets.”
“During the third quarter, we increased our inventory levels to ensure timely delivery of products, increased our product pipeline, expanded our customer and manufacturing relationships internationally and utilized our Amazon(dot)com storefront to create more brand awareness and sales to service our end users. We remain committed and confident to providing market-leading innovative quality products for the professionals and other passionate builders.”
#3. TBLT Potential Catalyst - Bullish Technical Indicators
As of close Friday, TBLT was displaying a multitude of bullish technical indicators according to Barchart.
Short Term Indicators
- 20 Day Moving Average
- 20 - 50 Day MACD Oscillator
- 20 - 100 Day MACD Oscillator
- 20 - 200 Day MACD Oscillator
Medium Term Indicators
- 50 Day Moving Average
- 50 - 100 Day MACD Oscillator
- 50 - 150 Day MACD Oscillator
Long Term Indicators
- 100 Day Moving Average
- 150 Day Moving Average
- 200 Day Moving Average
Additionally, Barchart is reporting its composite "TrendSpotter" indicator to be triggered as bullish too.
Furthermore, with several of its technicals triggered as bullish, Barchart is reporting TBLT as a "100% BUY" in the short term.
Could this be a sign of a continued vertical move today and the days ahead?
#4. TBLT Potential Catalyst - Red Hot Chart / Support Levels
Take a peek now at TBLT's 6-month chart below: