Dawson James analyst James McIlree reiterates a Buy rating on 22nd Century Group with an $8.50 price target after a low-nicotine mandate was recommended by the Biden Administration. The analyst believes this is bullish for 22nd Century. Prior announcements of changes to the allowed amount of nicotine in cigarettes has driven substantial share price appreciation for the company, McIlree tells investors in a research note. He says that complying with a non-addictive low-nicotine mandate will be expensive for the industry if it pursues nicotine extraction or plant modification on its own. However, 22nd Century “has technology that could solve their problem,” writes McIlree. And if the industry determines it is better to focus on e-cigarettes, “this leaves the combustible market wide open” for 22nd Century’s VLN, McIlree says.
next post