Harvest Health and Recreation Inc (HARV)

[JohnCM]

On the contrary, Wall Street is ignoring Harvest Health.

Harvest Health & Recreation Inc. (HRVSF)

Founded in 2011, HRVSF is involved in the cultivation, processing, and selling of cannabis in the United States. It offers cannabis oil, capsules, tinctures, and cannabis product edibles under the Roll One, Modern Flower, Evolab brands, among others. The company also operates retail dispensaries that sell cannabis products to patients and customers.

Last month, HRVSF completed the divestiture of its two medical marijuana dispensary assets in North Dakota as a part of its strategic plan to allocate resources in core markets to further enhance growth opportunities.

In January, it launched recreational cannabis sales in Arizona. HRVSF registered its first sale as it began offering access to regulated and legal cannabis products to serve both medical patients and recreational customers across the state.

HRVSF’s total revenue increased 86% year-over-year to $61.64 million in the third quarter, ended September 30, 2020. Its gross profit grew 222.7% from the year-ago value to $38.33 million, while its adjusted EBITDA rose 156.1% sequentially to $10.5 million over this period. The company’s gross profit margin, excluding biological adjustments, in the third quarter was 46.6%, compared to 35.0% in the third quarter of 2019.

A consensus EPS estimate for fiscal 2021 represents a 158.3% improvement year-over-year. The consensus revenue estimate of $378.07 million for the current year represents a 65.3% increase from the same period last year. The stock has gained 97.6% over the past year.

Of the four Wall Street analysts that provided ratings for the stock, three have rated it “Buy.” Also, the consensus price target of $5.71 represents a potential upside of 47.1%.