ST. PETERSBURG, FL, Sept. 12, 2024 (GLOBE NEWSWIRE) -- 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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