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Earth Science Tech Inc (OTCMKTS:ETST) $4.12 Price Target Spooks Investors

Earth Science Tech Inc (OTCMKTS:ETST)

Earth Science Tech Inc (OTCMKTS:ETST)

Earth Science Tech Inc (OTCMKTS:ETST) stock tumbled by 13.67% in Thursday’s trading session after independent equity research firm, SeeThruEquity, initiated coverage of the stock with a share price target of $4.12. The stock ended the day at $0.820 a share as the high valuation caught investors by surprise.

$4.12 Valuation

The equity research firm in its research note says it sees Earth Science Tech Inc (OTCMKTS:ETST) as a high risk and high reward play given its burgeoning prospects in legal cannabis and hemp industry. The company is also pursuing opportunities for growth on nutraceuticals, pharmaceuticals, and medical devices development.

The SeeThruEquity $4.12 price target assumes that Earth Science Tech Inc (OTCMKTS:ETST) will be successful in the new product launches that are key to the company’s growth strategy. The research firm also believes aggressive marketing campaigns will give the company’s products an edge in the market leading to sales growth.

However, the firm has warned that regulatory changes, especially in the cannabis space, could significantly hurt Earth Science Tech Inc (OTCMKTS:ETST) growth prospects.

“Our team is passionate and truly believes in our brand. We truly believe ETST will emerge as a leading biotech, and most importantly, we plan to keep helping individuals to positively change and improve their lives,” said Earth Science Tech Inc (OTCMKTS:ETST) President, Nickolas S. Tabraue.

The SeeThruEquity valuation is based on the existing legal cannabis market. The Nutraceuticals that Earth Sciences is currently developing have already proved to be capable of treating arthritis and chronic pain. Those markets are worth more than $7 billion.

Robust Pipeline

Earth Science Tech Inc (OTCMKTS:ETST) boasts of a robust pipeline of nutraceuticals supplements as well as pharmaceuticals. The company plans to launch three sports supplements this year and two CBD based drugs in the first quarter of next year. A new e-liquid and edible gummies should be ready for sale in the third quarter.

The biotech company recently launched a new flavored CBD oil, organic chocolate CBD, and pet CBD that it expects to drive revenues heading into 2018. Sales for organic chocolates have been impressive with the company’s “Orange Blossom” receiving praise as the best CBD oil available in the market.

Earth Science Tech Inc (OTCMKTS:ETST) has also inked strategic partnerships with Karmavore Superfoods, Forzagen, and Smart medicines as part an effort that seeks to diversify the current product line. The company plans to venture into new markets with the support of the new partners.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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