Neptune Wellness Solutions Inc (NEPT) announced on Wednesday product development collaboration with International Flavors & Fragrances Inc (IFF) aimed to co-develop hemp-derived CBD products for the United States.
No additional details of the agreement were disclosed.
Shares of Neptune Wellness Solutions Inc (NEPT) closed higher for a second consecutive trading session on NASDAQ on Wednesday. It has also been the sharpest daily surge since September 25th. The stock went up 1.12% ($0.04) to $3.62, after touching an intraday high at $3.68, or a price level not seen since September 30th ($3.68).
Shares of Neptune Wellness Solutions Inc have risen 42.52% so far this year, following a 7.63% gain in 2018.
In Toronto, the marijuana stock went up 4.25% (CAD 0.20) on Wednesday to close at CAD 4.91.
“IFF is a well-recognized leader and innovator in taste, scent, nutrition and ingredients and we could not be more excited at the potential of combining the resources of our two organizations to develop plant-based consumer products, including hemp-derived CBD products,” Michael Cammarata, Neptune’s Chief Executive Officer, said in a statement.
“The formulation and technological expertise that IFF cumulates will greatly benefit Neptune in accelerating its market penetration in the U.S. CBD market. This partnership aligns well with our growth strategy of expanding core customers and of supporting consumer packaged goods companies and fragrance houses’ expansion into the CBD market,” the CEO added.
Analyst stock price forecast and recommendation
According to CNN Money, the 2 analysts, offering 12-month forecasts regarding Neptune Wellness Solutions Inc’s stock price, have a median target of $7.15, with a high estimate of $7.52 and a low estimate of $6.78. The median estimate represents a 97.44% upside compared to the closing price of $3.62 on October 2nd.
The same media also reported that all 2 surveyed investment analysts had rated Neptune Wellness Solutions Inc’s stock as “Buy”.
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