In some released analyst guidance, GMP Securities Healthcare and Cannabis Sector Analyst, Ryan Macdonell, lowered his price target on shares of MediPharm Labs Corp. (TSXV:LABS) (OTC:MEDIF) (FRA:MLZ) while maintaining a buy rating.
This adjustment to MediPharm’s price target comes on the heels of the company’s recent closing of a $75 million CAD capital raise at an offer price of $5.55 CAD per share and with the offering increasing from the previous roughly $60 million. Additionally, MediPharm just announced a $20 million CAD debt facility with a Canadian bank.
Ryan Macdonell’s price target of $7.75 CAD per share implies a potential upside of approximately 46.50% based on the last traded price of $5.29 CAD per share on the TSXV.
According to Cantech Letter, “Due to the dilution coming from the bought deal, Macdonell has dropped his target to $7.75…Macdonell thinks that LABS will generate fiscal 2019 revenue and EBITDA of $118.4 million and $29.3 million, respectively, and fiscal 2020 revenue and EBITDA of $223.3 million and $71.3 million, respectively.”
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