BALTIMORE, MD / ACCESSWIRE / November 7, 2022 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research report on AMMO, Inc. (NASDAQ:POWW), a leading vertically integrated producer of high-performance ammunition and components, and the owner of the largest online marketplace serving the firearms and shooting sports industries. The report carries a price target. To view the new research report, along with disclosures and disclaimers, or to download the report in its entirety, please visit https://bit.ly/3TsUg0F.
Headquartered in Arizona, AMMO, Inc. designs and manufactures products for a variety of aptitudes, including law enforcement, military, sport shooting and self-defense. AMMO promotes branded munitions as well as its patented STREAK™ Visual Ammunition, /stelTH/™ subsonic munitions, and specialty rounds for military and law enforcement use. AMMO also owns GunBroker.com, the largest online marketplace dedicated to firearms, hunting, shooting and related products. These include firearms, ammunition, air guns, archery equipment, knives and swords, firearms accessories and hunting/shooting gear online.
In the Opportunity Research report, analyst Rob Goldman reviews upcoming strategic and operational inflection points, milestones, a proxy fight, and the potential future impact of these events on the Company and its valuation.
Overlooked Positioning, Growth Opportunities to Drive Valuation
Goldman commented, "AMMO is positioned as one of the top 5 munitions producers in the nation. The Company leverages its IP and design approach to produce in-demand premium, branded ammunition and ammunition components for use by law enforcement, military and individuals. AMMO's core business leverages unrivaled market demand and is poised to generate sales and profit margin growth. The Company can produce billions in munitions and components annually and is positioned to broaden its standing via its access to 10,000+ retail locations.
"In addition to enjoying future operational efficiencies due in part to its new, start-of-the-art facility in Manitowoc, Wisconsin, AMMO should increase sales to military, and law enforcement agencies in the US and abroad in FY23. Separately, AMMO owns the largest online auction marketplace for firearms, shooting and related products with 7M+ users and 25,000 FFL partners. A popular online platform with a 20-year history, this unit generates enviable EBITDA."
Potential Business Separation, Impact, and Forecasts
"Management has proposed a separation of the munitions and marketplace businesses into two public entities whereby shareholders would own one share of each firm. This proposal has been met with controversy and a pending proxy battle. We believe this current situation and potential outcomes have created an attractive entry point for opportunistic investors that seek to take advantage of potential, future inflection points. Moreover, regardless of the separation resolution, we believe that our six-twelve month price target reflects a reasonable sum of the parts EBITDA multiple valuation based on management's combined $300M revenue and $108M adjusted EBITDA guidance for FY23," noted Goldman.
About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.
Goldman Small Cap Research is not in any way affiliated with Goldman Sachs & Co.
This press release contains excerpts of our most recently published company report on AMMO, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from AMMO, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.
Separate from the factual content of our update about the Company, we may from time to time include our own opinions about the Company, its business, markets, and opportunities. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.
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Goldman Small Cap Research
Rob Goldman, Analyst
SOURCE: Goldman Small Cap Research
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