Pyxus International (PYX) Stock Runs On Analyst Initiation

Pyxus International PYX Stock News

Pyxus International Inc (NYSE: PYX) is rocketing in the market this morning, up more than 31% early on. However, with no news releases or SEC filings, the gains come as a surprise to many.

Ultimately, PYX stock is flying as the result of a bullish analyst initiation. Here’s what’s going on:

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Imperial Capital Initiates PYX Stock With An Outperform Rating

In a note to investors that was issued this morning, Imperial Capital inititated coverage on Pyxus International with an incredibly bullish view. In the note, analyst Mary Ross Gilbert, a noted analyst, started the stock with an Outperform rating.

Moreover, the analyst set a $71 price target on the stock, suggesting a more than 400% upside compared to Monday’s closing price. In the note, Mary Ross Gilbert pointed to a combination of cultivation, extraction and e-liquid capabilities that she believes will drive compelling growth in PYX for years to come.

The analyst also pointed to the company’s significant financial and operating leverage. Stating that these strengths deserve a higher valuation. Finally, Mary Ross Gilbert suggested that the valuation of the company seems conservative when compared to Canadian cannabis and hemp companies.

At the end of the day, while it’s never a good idea to blindly follow the opinions of analysts when making investment decisions, investors do pay close attention to their views. This seems to be the catalyst that is driving PYX stock higher this morning.

What Is Pyxus International?

Pyxus International is an aggriculture company that is focused on reliable production and sourcing of tobacco, cannabis and hemp products. The company made its name early on as one of very few whole-leaf tobacco vendors. In fact, the majority of the company’s revenue comes from the sale of its tobacco.

Nonetheless, the company has gained some serious attention as of late after moving into the e-liquids, cannabis and hemp markets. In fact, the company is quickly emerging as a key player in the legal Canadian cannabis sector as well as the legal hemp sector in the United States.

Moreover, PYX is uniquely positioned to take the United States recreational cannabis market by storm once it is Federally legal to do so. Ultimately, outside of large Canadian cannabis producers like Aurora Cannabis (ACB), Cronos (CRON), Aphria (APHA) and Tilray (TLRY), there are few players that have the agricultural capabilities and the funding that would be required to compete with the company here in the US.

To make the argument even better, the company is already located in the United States. Therefore, it doesn’t have to worry about the legal red tape associated with entering into the legal hemp industry in the United States, nor will it have to worry about import issues once cannabis becomes legal.

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Final Thoughts

At the end of the day, Mary Ross Gilbert seems to have hit the nail on the head here. With its move to hemp, legal cannabis and e-liquids, and strong financial and operational positioning, I also believe that Pyxus international has the potential to see dramatic gains ahead.

What Do You Think?

Where’s PYX stock headed next? Join the discussion in the comments below!

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