Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuAir Global is primed to corner the tobacco industry, according to Roth Capital. The firm initiated coverage on the flavored hookah tobacco company with a buy rating and an $11.50 price target, implying a 55% upside to Tuesday’s close. Shares of Air Global popped nearly 2% following the initiation. Analyst Nick Anderson pointed to the company’s growth prospects as it expands its footprint into new nicotine segments, bolstered by its core shisha business. “Given the regulatory momentum and growth opportunities we are seeing around flavored vapes and nicotine pouch products, we believe AIR will be able to leverage its brand affinity and cash flow profile to compete in both categories over time,” Anderson said. AIIR 3M mountain AIIR 3-month chart Air Global is known as a leading producer of flavored shisha molasses with operations across the Americas, Europe, Middle East, Africa and Asia. The company went public in May and has a market cap of $1.2 billion. Roth is confident that there’s more pricing leverage within shisha compared to traditional nicotine categories given the “superior margins along the value chain,” he wrote in a note to clients. Air Global’s shisha business generated $396 million of 2025 revenue and about $158 million of adjusted EBITDA, providing cash to invest in higher-growth opportunities that carry lower risk, Roth noted. The company is also diversifying. In July, Air Global made a $20 million preferred-equity investment in Greentank, a vaporization hardware and technology company. Management said the investment “unlocks its potential ability to accelerate its growth strategy,” Air Global said in the press release . Another growth category that Roth believes offers upside is Air’s investment in a charcoal-free electronic hookah device called OOKA. The company is also investing in OOKA branded nicotine pouches and vapor products. While tobacco has incrementally lost its social appeal throughout the years, Air’s shisha volume grew at a 0.4% compound annual growth rate from 2018 through 2025 versus a 6% annual decline for U.S. cigarettes, according to Roth Capital. To be sure, some states have strict indoor smoking laws and require establishments like restaurants and bars to have permits to serve hookah. Still, Roth Capital said that regulatory positioning is favorable.Read More