18:30 EDT [Dow Jones] Canaccord Genuity's hunger for chocolate maker Yowie (YOW.AU) is growing. The broker lifts Yowie to buy from speculative buy, after a string of recent achievements made the stock a less risky bet. These achievements include persuading more U.S. retailers to put its product on the shelves, increasing manufacturing capacity, ordering a new wrapping machine, and selling out of its first licensed Angry Birds product in under two weeks. Also, Yowie is cashed up following a A$32 million equity raising and ready to secure a huge opportunity in the U.S. and elsewhere, Canaccord says. "With the added balance-sheet capacity, we expect management to spend accordingly to secure its number 1 selling position in its category, across a broader range of distribution channels while they still enjoy their first mover advantage," the broker says. YOW last traded at A$0.93, well below Canaccord's A$1.68/share price target. ([email protected]; @dwinningWSJ)
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YOW Price at posting:
93.0¢ Sentiment: Buy Disclosure: Held
