SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, recently initiated Peak Pharmaceuticals Inc. (OTC: CTCO), a specialist in the development, manufacturing, sales and marketing of pharmaceutical-grade, hemp-based nutraceutical and supplement products for the human and animal health markets, with a buy rating and $1.26 per share price target.
“In our estimation Peak Pharmaceuticals, Inc. offers an intriguing way to invest in the cannabis market – a market with high growth potential that has been attracting attention recently due to efforts to expand legal uses of cannabis in the United States,” said Ajay Tandon, CEO of SeeThruEquity. “We see material growth potential for Peak Pharma in the upcoming quarters and are initiating coverage with a 12-month price target of $1.26.”
In the research coverage, SeeThruEquity highlights several aspects of the company’s story that make it a compelling investment opportunity:
- Large Initial Opportunity in Nutraceuticals. Peak Pharmaceuticals will initially focus on the human and pet nutraceutical industry as a rapid and cost-effective path to market. While the company’s initial CannaPet line-up is already on the market, the analyst expects the product line to expand in FY2015.
- Significant Long-term Potential. Peak Pharmaceuticals is a key player in the rapidly growing cannabis industry, which the analyst expects will grow from $1.3 billion in 2013 to $35 billion by 2020 if marijuana is legalized on a federal level. The nutraceutical industry is also growing at an attractive 6.5% CAGR.
The analyst’s $1.26 per share price target reflects a significant 563% premium over the current market price of $0.19 per share. While the investment is considered highly speculative, the report notes that the company is one of the few in the cannabis industry capable of generating revenue now without the need for further legalization. These attributes are due to the company’s use of hemp that it legally grows to extract CBDs.
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