A positive research report from a brokerage can often prove to be a major boost for a company, and that is what seemed to have happened with the Kaival Brands Innovations Group Inc. (NASDAQ:KAVL) stock on Thursday. The company’s stock was in the middle of a rollicking rally yesterday following such a research report and clocked gains of as much as 38.16% amidst heavy interest. The trading volume also went up to 8.5 times its average 30-day trading volume.
On October 9, the independent research and analysis firm Harbinger Research released a report on the Kaival Brands stock and classified the stock as ‘a’strong buy’. That may have resulted in the rally that ensued.
It could be a good idea to take a look at some of the highlights from the research report. The report noted that it expected Kaival Brands to record strong sales after it won the landmark court battle with the United States Food and Drug Administration. It enabled the company to be one of the very few outfits that could continue to sell its ENDS products. The research report noted that following a lackluster show in many quarters, the verdict paved the way for a strong performance.
It was noted that the company had already started ramping up its sales channels through the expansion of its relationship with Circle K. In the last quarter alone, the company managed to add as many as 1500 new Circle K locations. Additionally, HT Hackney and Coremark both placed significant orders recently.
However, one of the more important aspects of its growth story would be the deal with the Phillip Morris International affiliate. The royalties from the licensing deal with the affiliate grew at a rapid rate in recent times, the report noted. It may well be a good time to start tracking Kaival Brands stock.