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September 12, 2024, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) has published an Initiation of Coverage Report on Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) titled, “Best-in-Class Execution in a Long-Term Favorable Growth Category.” The report can be accessed here.
Hydrofarm is a non-plant touching, NASDAQ-listed, leading manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA). The company’s products consist primarily of consumable products, such as nutrients and grow media, and durable products, such as grow lights, climate control solutions, rolling racks/benches, and various other equipment and supplies.
It is an ancillary business that falls under the pick-and-shovel investment analogy rooted in the tools needed to participate in the gold rush. While prospecting for precious metals was highly speculative, and only a few ultimately prospered, the companies that made mining tools were consistently more successful.
Hydrofarm trades at 0.57x 2024 consensus sales estimates, is expected to increase revenue and adjusted EBITDA in 2025, and has a current ratio of more than 3. Coupled with potential rescheduling and several adult-use transitions, Hydrofarm is poised for growth in what has been a challenging sector.
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Water Tower Research is modernizing Investor Relations through research-driven communications and Investor Engagement. Sound investment research begins with good information. At WTR, we help companies and investors connect by creating expert information flow and strategies that are the foundation of a successful modern investor relations platform. Our analysts and capital markets professionals bring decades of unrivaled Wall Street experience and insight to a new digital world of investor communications and engagement. Our research and investor content is distributed across traditional research aggregators like Bloomberg, FactSet, etc., proprietary direct distribution lists, social media, search engines, and our website. As a result, every institutional and retail investor has equal access to our high-quality company research. Our mission is to help companies take control of their IR program and proactively reach investors while bringing investors a consistent flow of quality information to help them understand our clients’ businesses, industries, and the investment opportunities they present.
