Globe Says Stanley Rates CanniMed “Speculative Buy”
The Globe and Mail reports in its Thursday edition that Echelon Wealth analyst Russell Stanley says CanniMed Therapeutics’ ($10.29) industry-leading production record and “advanced” revenue mix “position it well competitively.” The Globe’s David Leeder writes that Mr. Stanley rates CanniMed “speculative buy” in new coverage. He targets the shares at $14. Analysts on average target the shares at $15.35. Mr. Stanley says in a note: “CanniMed … has three times the production history of its closest peers, having been the sole cannabis supplier to Health Canada from 2001 to 2014. We believe this gives CMED a significant advantage over competitors that are still ‘early days’ in their production story. Approximately 49 per cent of the company’s revenue now comes from the sale of high-value cannabis oils, which is the largest revenue share amongst its peer group. Many producers have only recently obtained their licenses to sell cannabis oils, and only a handful of them have developed oil sales to a meaningful share of revenue thus far. We therefore believe CMED has a demonstrated ability to develop and monetize new products, which we view as a competitive necessity for mid/long-term success in this industry.”
© 2017 Canjex Publishing Ltd. All rights reserved.