We are reiterating our Buy rating and price target for Starco Brands, but lowering our 2024 and 2025 projections to primarily reflect higher marketing costs to support multiple newly announced door expansions for each of the company's key brands beginning in 2Q24 and concentrated in 4Q24. We believe Starco's offerings are poised to take highly material leaps, with major expansions at over 10,00 doors in 2024, which we believe will position the company for material, multi-year top line growth and, with the ability to begin to leverage their somewhat fixed infrastructure, margin expansion. Further, we believe these agreements position Starco to drive even further sales per door as they increase offerings and categories. As such, we reiterate our Buy rating and $0.25 price target on STCB.
