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Why ChromaDex Trounced the Market on Tuesday

By Eric Volkman - Mar 16, 2021 at 6:48PM

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Another investment bank lifts its price target on the company's stock.

What happened

ChromaDex (CDXC -5.46%) was a hit on a slightly downbeat Tuesday for the broader market. Its shares raced nearly 10% higher on a price target increase from an analyst. 

So what

New York-based investment bank H.C. Wainwright lifted its price target on the stock Tuesday. Actually, that's an understatement; that level was shot into the sky, to $16 per share from the previous $7. The company maintains its buy recommendation on ChromaDex.

A medical professional holding dollar sign paperweight.

Image source: Getty Images.

H.C. Wainwright's upgrade is not the only one in recent days. Last week, Ladenburg Thalmann analyst Jeffrey Cohen cranked his target price on the shares up to $12 from the preceding $8.50, and Brian Nagel from the influential Oppenheimer nearly doubled his from $9 to $17. Both prognosticators have the equivalent of a buy recommendation on the stock.

Two major recent factors are behind the sunnier outlooks. First, ChromaDex reported fourth quarter results that, while basically in line with analyst expectations, showed a considerably narrower EBITDA loss compared to the year-ago quarter. Second, and perhaps more important, the company announced that it signed a supply deal with Walmart for the monster retailer to carry its flagship Tru Niagen dietary supplement in 3,000 of its stores.

Now what

ChromaDex has an active product pipeline and a modest chemicals business, but for now its fortunes are strongly tied to Tru Niagen. So at the moment it's a fairly limited healthcare business. Potential investors should keep an eye on how that pipeline develops.


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Stocks Mentioned

ChromaDex Corporation Stock Quote
ChromaDex Corporation
$1.73 (-5.46%) $0.10
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
$122.43 (-6.79%) $-8.92
Oppenheimer Holdings Inc. Stock Quote
Oppenheimer Holdings Inc.
$32.89 (-2.55%) $0.86

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