Village Farms International Inc. (NASDAQ: VFF) recently reported its financial results for Q4 2022 in which revenue was $69.5 million, a decrease of 5% compared to $72.4 million in Q4 2021.
Michael DeGiglio, Village FarmsCEO, commented on Thursday: "The fourth quarter of 2022 once again demonstrated the momentum in our Canadian cannabis business as investments in new brands and product innovations contributed to 25% year-over-year growth in retail branded sales and our 17th consecutive quarter of positive adjusted EBITDA."
Cantor Fitzgerald's Pablo Zuanic confirmed an Overweight rating on the company but lowered his 12-month price target to US$4.15 from US$7.25 due to the sector rating downgrade and the lower value assigned to assets that are not cannabis.
According to Zuanic, if Canada's recreational market "is a war of attrition, we believe VFF is well-placed to win and continue to gain market share, given its low-cost structure and recognized flower quality."
He added: "Conservatively valuing the non-cannabis assets at $135Mn and taking the cannabis piece at …