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Investing.com – The Honest Company (NASDAQ:HNST) stock rose 2% Friday on getting an upgrade to buy from Loop Capital.
Analyst Laura Champine maintained her price target for the stock at $17, which means an upside of 13% even after the latest rise.
Loop sees a buying opportunity for investors with shares of the Jessica Alba-founded company down 20% in the last four weeks.
“. . .we think potential destocking pressures in Q2 are more than adequately priced in at the current valuation of approximately 3x 2022 sales. Management has recently maintained that retail demand is strong, and any destocking-related weakness in Q2 should be made up in H2,” Champine said in her note, according to StreetInsider.
According to the analyst, inventories at the retailers are down as a constrained supply chain and logistics providers struggle with surging demand.
