In a recently released analyst research report, GMP Securities analyst Justin Keywood reiterated his buy rating on shares of Zenabis Global Inc. (TSX:ZENA) (OTC:ZBISF) (FRA:2VV) with a price target that suggests some noteworthy upside to come.
This update to analyst guidance comes on the heels of news that Zenabis Global Inc. received its cultivation license from Health Canada for the Zenabis Langley facility. The cultivation license received adds 9,900 kg of licensed annual cultivation capacity at Zenabis Langley, and increases total Zenabis licensed annual cultivation capacity from 32,900 kg to 42,800 kg of dried cannabis, an increase of more than 30%.
According to Cantech Letter, “Keywood says that the licensing is consistent with his timing expectations for the company and that the licensing progress strengthens his perspective on the company.”
Justin Keywood’s ZENA price target of $3.25 CAD per share implies a potential upside of approximately 154.58% based on the last traded price of $1.45 CAD per share on the Toronto Stock Exchange.
“In our view, the continued licensing progress for ZENA’s facilities helps de-risk our near-term forecasts. At 6.5x 2020 EBITDA, ZENA continues to trade well below most peers that average ~17x as a group,” noted Keywood in the client update.
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