In a recently released analyst research report, Beacon Securities‘ Managing Director of Equity Research, Russell Stanley, just reiterated his buy rating on shares of CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST) with a bullish price target.
This updated guidance comes on the heels of a few major catalysts for CannTrust including the purchase of 81 acres of outdoor cannabis cultivation land, getting their cultivation and processing permit under Health Canada amended to include the final 20% of its Phase 2 expansion, and the launch of three new medical marijuana product formulations.
Russell Stanley’s 12-month price target of $15.00 CAD per share implies a potential upside of approximately 62.51% based on the last traded price of $9.23 CAD on the TSX.
According to Cantech Letter, “Stanley maintains that TRST is trading at 15x his 2020 EBITDA estimate, which represents a 61-per-cent discount to the 38x average among cannabis companies with a $1 billion-plus market cap. He says that TRST also trades at a 78-per-cent discount to the 67x average at which US-listed cannabis companies trade.”
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