Beacon Securities Ltd. Managing Director and Research Analyst Russell Stanley, CFA just assigned shares of Canadian licensed producer Organigram Holdings Inc. (TSXV:OGI) (OTC:OGRMF) a ‘Buy’ rating alongside a price target of $12 CAD per share.
Based on a last-traded price of $7.29 CAD for shares of OGI on the TSXV, Russell Stanley’s price target represents approximately 64.6% of potential upside.
As the recreational market kicks off, Organigram just made the smart move to sell of its medical cannabis clinic group to Harvest Medicine Inc., a wholly-owned subsidiary of VIVO Cannabis Inc. (TSXV:VIVO) (OTC:VVCIF).
Organigram called the clinic group a non-strategic asset. If would-be medical marijuana patients turn to the recreational market for convenience, medicinally-focused clinic groups like these will certainly suffer.
Also, Organigram just announced that it is taking a 25% stake in alpha-cannabis® Pharma.
Established in 2016, alpha-cannabis® Pharma is strategically positioned to serve the German medical cannabis market which is quickly becoming one of the largest markets for medical cannabis in the world. Additionally, the German market is positioned as a potential gateway to supplying other European markets.
We’ll continue to monitor analyst activity and in the meantime, be sure to subscribe to Canadian Licensed Producer Updates here and Cannabis Stock Updates here so you never miss an important update. For updates on Organigram specifically, be sure to subscribe to Organigram Updates here.
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