Alliance Global starts coverage on Flora Growth with 'buy' on profit potential
23/09/2022 18:40
** Alliance Global Partners initiates coverage on cannabis
products maker Flora Growth Corp FLGC.O with a 'buy' rating
and says FLGC now has a strong revenue base and is nearing
profitability
** Brokerage says FLGC's recent acquisitions will help
expand its consumer products division and drive sustainable
growth; assigns PT of $2.50
** Adds that FLGC's Colombian cannabis operations offer
upside optionality at current levels along with notable growth
opportunities
** Expects co to generate more meaningful EBITDA margin of
16% in 2024, but adds that long-term margin potential is largely
dependent on Colombian export business growth
** 3 of 4 brokerages covering the stock rate it "buy", 1
"hold"; median PT is $3
** Including session's fall, stock down 50.6% YTD
(Reporting by Pratik Jain)
((Pratik.Jain@thomsonreuters.com;))