Cantor Fitzgerald’s Pablo Zuanic has had a busy couple of days as a plethora of cannabis companies file their financial reports. He took some time to share his view on the booming if sometimes rocky industry.
Here Are Some Highlights On Four Important Companies
Let’s start with Clever Leaves Holdings (NASDAQ: CLVR). The producer of pharmaceutical and consumer cannabis brands operating in Canada, Colombia, Germany, Portugal and the U.S. reported revenue of $3.3 million, an 18% decrease compared to $4.0 million in Q3 2021.
Zuanic maintained an Overweight on the stock but lowered the 12-month price target to $3.75 from $4.30 on reduced estimates and sectoral derating.
“In order to better manage working capital and get ready for flower exports from Colombia in 1Q23, the company reduced the harvest there by 89% YoY in 3Q22; while this is sensible, it resulted in much higher company-wide cost per gram ($1.13 in 3Q22 vs. $0.15 in 3Q21),” Zuanic said.
“We remain Neutral and reduce our 12-month price target to C$0.08 from C$0.09. We attach our updated model post the release of Sep qtr results. We see value in the …