Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) is gaining some serious traction in the markets today after releasing some exciting news and receiving a “Strong BUY” recommendation.
Indeed, the Israel-based food and nutrition company is gearing up for its much-anticipated US product launch, and analysts are taking note.
According to TradingView’s technical analysis, which takes into account multiple indicators to give an overall assessment of the stock’s price and direction, an impressive 14 moving averages point to a “Strong BUY” for Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF).
At the same time, Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) has received a solid “Strong BUY” rating from Investing.com’s daily technical analysis, with 12 moving averages pointing to a “BUY” and 10 technical indicators showing a “Strong BUY” rating for the company.
Positive sentiments from analysts led to an increase in Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) share price on Tuesday morning.
By 12:30 pm EST, the company’s stock was up 9.63% to US$0.52 on the OTC and +7.81% on the CSE to C$0.69.
According to Morningstar.com, the company’s stock may continue on this upward trajectory.
The global financial firm believes the fair value for Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) stock is C$0.96, meaning the stock is currently undervalued and trading at a 27% discount.
Of course, it isn’t surprising to see the jump in share price after Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) revealed that it has signed a 5-year production memorandum of understanding (MOU) with a leading US-based organic baby formula producer.
According to the release, the company plans to produce its proprietary infant, toddler formula and children’s nutritional drinks at a new, state-of-the-art, infant nutrition facility and will invest roughly US$500,000 for a dedicated packaging and manufacturing line.
“After a rigorous selection process, we are delighted to enter into this production MOU, as it will allow us to ensure the highest quality and purity standards for Else formula,” said Else Nutrition co-founder and CEO Hamutal Yitzhak. “This world-class facility provides for hands-on monitoring of each batch, ensuring increased testing accuracy and the highest quality in finished products. Producing in a facility dedicated to making baby formula has far-reaching implications for quality and cleanliness.”
She added that high-caliber long-term production in the US ensures that the company will be able to meet future demand in a key global market.
Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) plans to launch its plant-based, non-dairy, non-soy toddler formula and children’s nutritional drinks in the US in Q2 2020.
The company is already generating revenue from the sale of its vegan baby snacks, bottles, and accessories in Israel; however, the US market is expected to boost the company’s sales considerably this year.
According to market research firms, the infant formula industry could reach $90 billion by 2025, offering Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) a massive opportunity to provide the market with a much-desired alternative to dairy or soy-based formulas.
It’s clear the US market is ready to welcome Else products with open arms after a broad US consumer research study revealed very positive sentiments. According to the study, which included 1,858 statistically significant potential customers, 82% have a favorable view of the company’s product concept, and over 60% indicated intent to purchase.
The study validates the strong desire for dairy alternatives and puts Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQB:BABYF) in the spotlight.
Investors will want to watch for the upcoming product launch in the US market in the second quarter of this year.
Featured Image: Canva
