Boston, MA 03/24/2014 (wallstreetpr) – Share of 22nd Century Group Inc (NYSEMKT:XXII) are currently trading down. When a stock takes a downturn it scares many investors, but XXII is a different case, the fall in the stock price is seen by analysts as a perfect opportunity to buy as things are poised to get better from here.
A number of analysts are recommending the stock as a “buy” despite the fallout in recent sessions. In the current sessions, the stock is down more than 20 percent, in a heavy sell-off session where far more shares than in a normal day are changing hands. The shares traded in the range of $0.46 – $6.36 in the past 52-weeks.
Attractive entry point
According to analysts at Chardan Capital Markets, the stock provides attractive entry point for the investors who can decipher the opportunities it presents. The analysts have a “buy” tag on the stock with price target of $8. The price target is significantly higher than the $6.36 highest price in the past 12 months.
Growth catalysts
Analysts are convinced that 22nd Century Group Inc (NYSEMKT:XXII) bears multiple catalysts. And these will be able to propel the share upwards over the coming months. Looking at things from a fundamental standpoint, XXII is boosting its cash position with sale of assets and also looking into new opportunities for its interest in tobacco products business. Also, the company continues to curb expenses and costs to ensure that its bottom line benefits from the growth in top line. In all this, the stock price will benefit to good lift.
The company auctioned its excess machinery early this month and announced generating $640,000 in net proceeds. By doing away with excess assets, the company is able to enhance its cash flow position while reducing cash burn on non-core businesses.
In order to achieve volume production and therefore pursue higher revenue, the company has in place a dual track process underway. If all goes well and the required permits are attained, the company should be able to significantly improve its production and thus revenue.
Top picks for 2014
Several analysts have 22nd Century Group Inc (NYSEMKT:XXII) as their top pick stock for this year. The analysts are convinced that the company presents far more strength than weaknesses. Thus, there seem to be nothing to distract its growth on both share price and earnings.
