Coverage initiation and valuation
Ascendiant Capital has initiated coverage on Synergy CHC Corp. (NASDAQ: SNYR) with a Buy recommendation and a price objective of $5.00. That target implies a significant increase relative to the stock's present price of $1.87. Data from InvestingPro included in the coverage note shows Synergy trading at a price-to-earnings ratio of 7.43, and InvestingPro classifies the stock as trading at a low earnings multiple.
Business profile and margin profile
Synergy CHC markets consumer health care, beauty and lifestyle products, led by its flagship brain health supplement FOCUSfactor and its Flat Tummy brand, which targets women's nutrition and weight management. InvestingPro data cited by the analyst underscores an especially high gross profit margin for the company - 71.08% - indicating strong pricing power for its higher-end consumer health offerings.
Product breadth and retail distribution
The FOCUSfactor brand has grown materially since Synergy's acquisition of the business. At the time of acquisition in 2015, the line comprised three SKUs; it has since expanded to more than 34 SKUs. Recent distribution gains noted by Ascendiant include placements at major national retailers, namely Costco, CVS and Walmart. The expanded assortment also encompasses Ready-to-Drink (RTD) FOCUSfactor Focus + Energy beverages and concentrated energy shots, broadening the brand's presence beyond traditional supplement formats.
Market opportunity cited
Ascendiant's note references market research from Grand View Research, which estimates the global brain health supplements market at $8.6 billion in 2022 and projects compound annual growth of 13.3% from 2023 through 2030. The coverage initiation frames that growth outlook as a sizable market opportunity in a fragmented industry where Synergy could scale and pursue increased market share.
Recent corporate developments
In other company disclosures, Synergy CHC reported third-quarter 2025 results showing an increase in net revenue alongside a decline in net income. Management has expressed optimism about growth prospects in segments the company highlighted as strategically important, particularly clean energy and the brain health beverage category.
Synergy has also announced a series of geographic and distribution moves. The company plans to roll out its FOCUSfactor beverage line across Canada in April 2026, with Walmart Canada slated to introduce four new beverage SKUs. To support Latin America expansion, Synergy appointed Pedro Colmenares as Director of Sales & Marketing for Mexico & Latin America and has begun shipments to Costco Mexico. Additionally, Synergy signed distribution agreements with Pine State Beverage, Fuhrer Beverage Company and Banko Beverage Co. to increase beverage availability in Maine and Pennsylvania.
Context and implications
Ascendiant's initiation of coverage with a Buy rating and a $5.00 target highlights the firm's view that Synergy's product expansion, elevated gross margins and expanded retail footprint create a platform for growth. The analyst presentation also leans on the low current earnings multiple and the sizable addressable market for brain health supplements as supporting factors for upside potential.