In a recently released analyst research update, GMP Securities’ Healthcare and Cannabis Sector Analyst, Ryan Macdonell, reiterated his “Buy” rating on shares of Neptune Wellness Solutions Inc. (TSX:NEPT) (NASDAQ:NEPT) with a price target that suggests some noteworthy upside to come.
This comes on the heels of Neptune Wellness Solutions’ recent announcement that vaguely mentioned “new customer relationships for which the Company is expected to provide hemp-derived finished-form products and bulk extracts processed at Neptune’s U.S. extraction facility.” According to the release, included in these new relationships is a “large and well-established nutraceutical company for which Neptune will supply hemp-derived finished-form products.”
According to Cantech Letter, “Neptune has not disclosed the names of the new partners at the moment but one is with a large, established nutraceutical company. Macdonell, who describes the new event as a positive for the stock, says that the announcement likely speaks to Neptune’s cross-selling with pre-existing nutraceutical clients.”
Ryan Macdonell’s new NEPT stock price target of $9.00 CAD per share, equivalent to approximately $6.80 USD per share, implies a potential upside of approximately 78.57% based on the last traded price of $5.04 CAD per share on the TSX.
“We expect that the unnamed, large nutraceutical company is an existing client that Neptune works within its nutraceutical segment. Therefore, we believe today’s announcement is an example of the cross-selling opportunity of providing its nutraceutical clients with a path and platform for launching a line of hemp-derived CBD products. Furthermore, we anticipate that there could be additional clients from the nutraceutical segment which could be waiting in the ranks and exploring hemp-derived CBD products,” Macdonell wrote.
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