Maxim Group Keeps Buy Rating on cbdMD, Lowers PT to $2.

Maxim Group Keeps Buy Rating on cbdMD, Lowers PT to $2.

Maxim Group, a prominent financial research firm, has maintained its buy rating on cbdMD, Inc. (NYSE: YCBD) while lowering its price target to $2.00. This decision comes on the heels of the company's third-quarter financial results, which revealed a 10.9% decrease in revenue compared to the prior year, totaling $4.6 million [3].

The firm noted that while the company's financials were not up to par, cbdMD has implemented significant strategic changes, such as overhauling its marketing team and expanding its beverage brand, Oasis, into multiple new states. These moves have started to bear fruit, with revenue growth expected to pick up in the near future. Maxim Group believes that the company's compliance expertise and quality systems position it well to thrive in the face of heightened regulatory scrutiny.

The firm also highlighted the company's recent Series A Preferred Stock conversion, which eliminated $6.7 million in accrued dividend liability and added equivalent stockholder equity value. This conversion has significantly improved the company's financial position, with the book value of equity increasing from $0.67 million to approximately $6.1 million [3].

However, Maxim Group also noted that the stock has been volatile, with the price falling by -28.68% over the last 10 trading days. The firm believes that the stock may continue to perform weakly in the near term due to the lack of support below the current price and the presence of resistance from accumulated volume at $0.680. The stock's low liquidity and high volatility also pose risks to investors.

Despite these challenges, Maxim Group remains optimistic about the company's long-term prospects and has lowered its price target to $2.00, reflecting a 25% decrease from its previous target of $2.70. The firm believes that the company's strategic initiatives and improved financial position will drive revenue growth and profitability in the coming quarters.

References:
[1] https://seekingalpha.com/news/4485744-cbdmd-gaap-eps-of-0_21-revenue-of-4_6m
[2] https://stockinvest.us/stock/YCBD
[3] https://www.nasdaq.com/press-release/cbdmd-generates-46-million-revenue-3rd-quarter-2025-08-14