FREE - Whole Earth Brands spikes after Cantor Fitzgerald points to +150% upside

Cantor Fitzgerald launches coverage on Whole Earth Brands (FREE) with an Overweight ratings. "We believe that Whole Earth Brands should benefit from consumer trends toward natural alternatives, simpler labelling, and 'free-from' solutions. The company is comprised by a CPG-branded component of natural and artificial sweeteners (67% of current proforma sales), and a B2B unit selling flavors and ingredients (licorice products) sold to various industries. We consider the company’s natural sweetener business (a quarter of sales now) to be disruptive a la Beyond Meat/Freshpet, both in tabletop and baking use at retail and foodservice," writes analyst Pablo Zuanic. Zuanic and team estimate that natural sweetener growth opportunities plus gains in emerging markets with leading artificial sweetener brands like Equal and Canderel should contribute at least 10 points to sales growth per year. It is also noted that Whole Earth will use its unlevered balance sheet for M&A and share buybacks. Importantly,

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Whole Earth Brands spikes after Cantor Fitzgerald points to +150% upside