Organigram: Consensus Price Target Falls To $3.55

On November 23rd, Organigram Holdings (TSX: OGI) announced its fourth quarter fiscal 2021 results. The company reported net revenues of $24.85 million, up 22% year over year, while the cost of goods sold came in at $25.87 million greater than the net revenues. The firm also reported adjusted EBITDA of ($4.82) million and a net loss of $25.97 million. While the company reported a 7% market share in the Canadian recreational cannabis market, up from 5.4% last quarter.

A number of analysts cut their 12-month price targets on Organigram, bringing the average to C$3.55, or a 32% upside to the current stock price. Organigram has 12 analysts covering the stock, with 1 analyst having a strong buy rating, 2 have buy ratings and 9 have hold ratings. The street high sits at C$5.50 from Cantor Fitzgerald while the lowest sits at C$2.65.

In Canaccord’s fiscal fourth quarter review note, they reiterate their hold rating but lower Organigram’s 12-month price target to C$3.00 from C$3.50, saying, “An encouraging end to the fiscal year while macro challenges remain.”

For the quarterly results, Organigram came in slightly below Canaccord’s revenue estimate of $23.84 million but beat their adjusted gross margin estimate by almost $1.1 million. Canaccord says that the revenue and adjusted gross margin beat is due to Organigram increasing market share this quarter thanks to its SHRED value-priced flower and edibles.

Canaccord says that the quarterly results are overall better than their estimates but say “adj GM% is still ~1,800bp below levels on a YoY basis, as overall pricing in the sector continues to contract.” They additionally warn that the company has a significant portion of revenues derived from the value segment and that this segment will continue to see margin compression.

Below you can see Canaccord’s updated fiscal 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Verano: Canaccord Reiterates Ratings Following Pennsylvania Purchases

On April 22nd, Verano Holdings (CSE: VRNO) announced that they acquired two cultivation licenses in...

Saturday, April 24, 2021, 01:25:00 PM

Stifel Raises Eguana Technologies Price Target To $0.90

Yesterday Stifel GMP raised their price target on Eguana Technologies (TSXV: EGT) from C$0.85 to...

Thursday, May 6, 2021, 04:21:00 PM

Harvest Health: Second Quarter Consensus Estimates

Harvest Health and Recreation (CSE: HARV) announced that they will be reporting their second quarter...

Sunday, August 8, 2021, 01:01:00 PM

BMO Lowers Maple Leaf Foods’ Earnings Estimates On Expected Headwinds

Maple Leaf Foods (TSX: MFI) is expected to report its second-quarter financial results on August...

Saturday, July 9, 2022, 03:17:00 PM

Canaccord Lowers Cresco Labs’ Price Target To $9.50

On May 18th, Cresco Labs (CSE: CL) reported its first quarter financial results. The company...

Saturday, May 21, 2022, 03:02:00 PM