Canaccord analyst Bobby Burleson noted KushCo Holdings reported Q1 revenue upside but disappointed with its gross margins, which were negatively impacted by the cost of freight and temporary labor. He noted the company chose to focus on maintaining customer relationships in the face of supply constraints and he expects margins to normalize in the first half of 2019. He also believes the company will be in a better position to negotiate better pricing and terms and be better able to pass through tariff costs to its customers. Burleson reiterated his Speculative Buy rating and $7.50 price target on KushCo Holdings shares.