Air Global, a leading producer of flavored shisha molasses, has received a buy rating from Roth Capital, which highlights the company's promising growth prospects as it expands into new nicotine segments, including flavored vapes and nicotine pouches.
Analyst Nick Anderson emphasized the favorable regulatory environment and the company's ability to leverage its brand and cash flow for competitive advantage. Air Global's shisha business is projected to generate $396 million in revenue and $158 million in adjusted EBITDA by 2025, providing a solid financial foundation for further investments.
The company is diversifying its portfolio, having made a $20 million investment in Greentank, a vaporization technology firm, and is also developing a charcoal-free electronic hookah device called OOKA.
Despite challenges in the tobacco industry, Air Global's shisha volume has shown resilience, growing at a 0.4% compound annual growth rate from 2018 to 2025, contrasting with a 6% decline in U.S. cigarette sales. While regulatory hurdles exist, Roth Capital believes the overall positioning for Air Global is favorable