AMMO price target lowered to $2 from $2.25 at Roth MKM

Roth MKM lowered the firm’s price target on AMMO to $2 from $2.25 and keeps a Neutral rating on the shares. The company’s Q4 sales topped estimates, though the margins in the ammo segment remain challenged, causing its earnings to miss consensus, the analyst tells investors in a research note. The management blamed certain press equipment challenges for the sustained margin weakness and has brought in a manufacturing consulting firm to help with process improvement, RothMKM added, stating however that while the Gunbroker segment still looks healthy enough, the stock may not work until investors see sustained improvement in the core ammo segment.