Unwarranted negative reaction to ChromaDex 8-K a buying opportunity, says Roth

Roth MKM keeps a Buy rating and $8 price target on ChromaDex (CDXC) after the stock fell over 11% yesterday following the company’s 8-K, stating that the decline was “unwarranted” and represents a buying opportunity. Investors have misinterpreted the components of the filing and have wrongfully concluded that ChromaDex faces financial liability as a result of a change in its agreement with Dartmouth, but in fact, the firm sees the amendment as having an “immediate and positive financial impact”, and it is unlikely to have any material negative financial impact in the longer term, the analyst tells investors in a research note.