Craig-Hallum downgraded Sow Good (SOWG) to Hold from Buy with a price target of $4.50, down from $25. The firm thinks Sow Good – a producer of freeze-dried candy – has strong potential to continue leading the category from an innovation perspective and drive continued long-term growth, but notes two “significant headwinds that will take a couple quarters to resolve.” Namely, Mars has moved into the freeze-dried candy category and is seemingly taking aggressive action to gain exclusive shelf space at leading retailers, while in addition extreme heat led to a pausing of shipments throughout Q3 and into October and the firm expects a meaningful slowdown in sales over the next couple quarters while these affected SKUs work themselves out of the channel.
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Read More on SOWG:
- Sow Good reports Q3 EPS (33c) vs. 4c last year
- SOWG Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Sow Good announces variety of new freeze-dried candies
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