OrganiGram Holdings Inc. (OGI:CN) (OGRMF) PT Raised to Cdn$6.15 at Cantor Fitzgerald

April 13, 2021 1:33 PM EDT
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Price: $8.35 --0%

Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 38 | Down: 18 | New: 7
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Cantor Fitzgerald analyst Pablo E. Zuanic raised the price target on OrganiGram Holdings Inc. (OGI:CN) (OTC: OGRMF) to Cdn$6.15 (from Cdn$6.00) while maintaining an Overweight rating on revised export potential.

The analyst commented, "Feb qtr results were worse than expected (24% sales miss vs. FactSet consensus), but we think the COVID related issues have now been well telegraphed by the major LPs (and results Mon/Tue by APHA.TO and OGI.TO). In fact, although it did not give guidance, management pointed to improved sales trends for the May qtr (Hifyre has the market in March up 18% MoM). As such, we think the current sectoral doldrums may give way to improving month to month market metrics. Also, comments about an Aug qtr shipment to Israel “selling in weeks” bode well for the international outlook (a reason that should justify valuation premiums besides CPG involvement). On the new fully diluted share count we calculate OGI.TO trades at a compelling 5.7x CY22 EV/Sales (we are in line with consensus at $148Mn by then) compared with high single digits for comparable peers, and “teens” for those with large CPG equity stakes (this March BATS.LON took a 19.9% stake in OGI.TO). We believe Organigram, the current travails notwithstanding (including leaving on the table $13Mn in sales in the Nov/Feb qtrs due to capacity planning issues), is also ahead of the peer group in terms of innovation and indoor quality cultivation. Our SOP-based PT approach now yields a 12-month price target of C$6.15 vs. C$6.00 before."

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