BALTIMORE, MD / ACCESSWIRE / November 16, 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 Splash Beverage Group, Inc. (NASDAQ:SBEV), an innovator in the beverage industry with a diverse alcoholic and non-alcoholic brand portfolio. 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/3TKkeN0.
Headquartered in Florida, Splash Beverage Group, Inc. is an emerging player in the beverage industry. Its popular beverage brands include Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash's strategy is to rapidly develop early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution.
In the Opportunity Research report, analyst Rob Goldman reviews the Company's competitive positioning, strategic and operational inflection points, and the potential future impact of these events on the Company and its valuation.
Overlooked Positioning, Growth Opportunities to Drive Valuation
Goldman commented, "Fast-growing, yet undervalued SBEV appears poised to enjoy a meaningful rise in share price and market value in 2023. Sales rose by 73% from 3Q21 to 3Q22, with continued strong gains forecasted ahead, but the stock is assigned a paltry 1.4x P/S ratio on FY23E projected sales, a big discount to the average 5x Price/Sales multiple assigned its peer group."
SBEV Leveraging Leadership's Prior Successes
"Management is replicating prior successes leading major brands that generated billions in annual sales. This strategy fosters the acquisition of core brands leading to diverse distribution and broad customer adoption," according to Goldman. The Company's approach could lead to industry-leading sales growth with solid gross margins based on potential product mixes. Plus, as product mix shifts and cross-sales occur, other costs could decline.as a percentage of revenue. Meanwhile, innovative niche brands and ecommerce including a general beverage and groceries B2B and B2C website are driving sales. A wine by the glass, flavored tequila, fruity sangria, and a Drew Brees ambassador-led performance drink are SBEV's core beverage offerings."
SBEV One of Industry's Fastest-Growing Players
"Our forecasts include revenue growing from $11M in 2021 to $19.4M in 2022 and to $30.7M in 2023. Our FY23E sales growth estimate represents a 52.8% top-line growth rate as compared with 9.7% for SBEV's peer group. Thus, our target reflects a similar Price/Sales multiple as the peer group members, despite the substantially higher growth rate," Goldman noted.
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.
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This press release contains excerpts of our most recently published company report on Splash Beverage Group, 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 Splash Beverage Group, 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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