NEW YORK, NY / ACCESSWIRE / March 4, 2015 / SeeThruEquity, a leading New York City- based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update on Marley Coffee (JAMN) highlighting fiscal 2015 preliminary results that were recently announced by the company.
The report is available here: JAMN FYE 2015 Update. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
"JAMN's management has correctly forecasted its revenues for the last few quarters. Based on management's track record and the company's narrowing losses, we are confident the company has the ability to achieve management guidance of $17-20 million in revenue and positive EBITDA. Given multiples applied to beverage brands in recent exits, a 4-6x multiple on revenues is a reasonable assumption. Currently, JAMN trades at approximately 1x Price to Revenue on the midpoint of its guidance for FY2016," stated Ajay Tandon, CEO of SeeThruEquity. "We are reaffirming our price target of $0.64 per share."
Other highlights of the update note include the following:
Domestic growth strategy
In FY2016, JAMN plans to spend resources on trade spending and consumer outreach programs, as well as the continued expansion into key accounts. JAMN plans to launch its EcoCups™ in calendar 2Q15, which it believes will boost its on-shelf turn rate and bring in new consumers who are concerned with sustainability issues associated with single serve coffee products. JAMN is currently on approximately 7,150 shelves with an average of 5.2 distinct products per store. The company is authorized to be in another 10,000 stores in the US. Through its partnership with Mother Parkers, JAMN expects to be in over 2,000 stores by the end of the year in Canada.
International distribution
In FY2016, JAMN plans to focus on international expansion in four key markets: Canada, the United Kingdom, Chile and South Korea. JAMN believes that the UK has the potential to follow the same growth trajectory as its US sales, and its UK group recently won the contract to provide a Marley Coffee concession inside Facebook's London headquarters. This is the largest Marley Coffee concession in the UK. JAMN expects the Chile division to be around $1 million in gross revenues in FY2016. JAMN is also commencing market testing in Australia and South Africa.