Thursday, April 02, 2020 9:17:17 AM
OrganiGram May Underperform Broader Cannabis Market In Q2, Says Cantor Fitzgerald
1:41 pm ET April 1,
OrganiGram Holdings Inc (NASDAQ: OGI) is scheduled to report second-quarter results before the market opens on April 14.
Although the quarterly results are unlikely to be a near-term catalyst for the stock, the company is among the better-managed licensed producers of cannabis and is profitable, according to Cantor Fitzgerald.
The OrganiGram Analyst
Pablo Zuanic maintained an Overweight on OrganiGram Holdings and reduced the price target from CA$9 ($6.32) to CA$5.80 ($4.07).
The OrganiGram Thesis
The overall recreational cannabis market is likely to have generated more than 8% sequential sales growth in February, implying total market growth of 21% for the February quarter, Zuanic said in a Wednesday note. (See his track record here.)
Yet OrganiGram is unlikely to post this kind of sequential growth in the second quarter in light of the company’s sales growth in recreational cannabis in the prior quarter, the analyst said.
In the November quarter, OrganiGram’s sales of recreational cannabis declined by 4% and the company’s overall sales growth was driven by the wholesale business, which generated $9.2 million in sales, he said.
Zuanic said he expects OrganiGram’s margins to be under pressure due to a higher marketing spend and start-up costs related to its new product lines.
The company is approaching positive operating cash flow and its stock valuation is attractive, according to Cantor Fitzgerald. to News Results
OrganiGram May Underperform Broader Cannabis Market In Q2, Says Cantor F
Recent OGI News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/08/2024 03:29:51 PM
- Organigram to Report Second Quarter Fiscal 2024 Results on May 14, 2024 • Business Wire • 05/08/2024 12:00:00 PM
- Organigram Recognized for Executive Gender Diversity by the Globe & Mail’s Women Lead Here Report for the Fourth Consecutive Year • Business Wire • 04/08/2024 10:00:00 AM
- Organigram’s Popular SHRED Brand Surpasses $200 Million in Yearly Retail Sales • Business Wire • 04/03/2024 12:06:00 PM
- Organigram Successfully Closes Previously Announced Underwritten Public Offering • Business Wire • 04/02/2024 12:51:00 PM
- Organigram Announces Pricing of Overnight Marketed Public Offering • Business Wire • 03/27/2024 12:56:00 PM
- Organigram Announces Launch of Overnight Marketed Public Offering • Business Wire • 03/26/2024 11:06:00 PM
- Organigram Invests in U.S. Based Open Book Extracts Representing Inaugural Jupiter Investment • Business Wire • 03/26/2024 05:36:00 PM
- Organigram Receives Health Canada’s Final Redetermination on Jolts • Business Wire • 03/22/2024 11:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/28/2024 03:42:13 PM
- Organigram Applauds the Standing Committee on Finance’s Recommendation on Excise Duty • Business Wire • 02/28/2024 01:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/13/2024 12:23:18 PM
- Organigram Reports First Quarter Fiscal 2024 Results • Business Wire • 02/13/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/07/2024 02:25:53 PM
- Organigram to Report First Quarter Fiscal 2024 Results on February 13, 2024 • Business Wire • 02/07/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/31/2024 01:36:42 PM
- Organigram Completes First Shipment to Germany, Extending its International Reach • Business Wire • 01/31/2024 11:00:00 AM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 01/25/2024 10:23:26 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/24/2024 10:30:11 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/24/2024 02:23:37 PM
- Organigram Announces the First Tranche Closing from BAT Investment • Business Wire • 01/24/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/19/2024 12:38:06 PM
- Organigram Announces Appointment of Karina Gehring to Board of Directors • Business Wire • 01/19/2024 11:00:00 AM
- Organigram Announces Results of Annual and Special Meeting, including Shareholder Approval of C$124.6 Million Investment from BAT • Business Wire • 01/19/2024 01:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 12/29/2023 12:25:46 PM
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