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."

The Analyst

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.

The Thesis

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 …

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