GMP Securities‘ Managing Director of Equity Research, Special Situations and Healthcare, Martin Landry initiated coverage on shares of Village Farms International Inc. (TSX:VFF) (OTC:VFFIF) (FRA:02V) alongside a ‘Buy’ rating.
Village Farms is one of the largest producers of premium quality greenhouse tomatoes, bell peppers, and cucumbers in North America, as well as 50% owner of Canadian L.P. Pure Sunfarms.
Pure Sunfarms recently received its fourth amendment to the cultivation license for its Delta 3 greenhouse permitting an expansion of its cannabis production area to 550,000 square feet. That is only half of the 1.1 million square foot Delta 3 production facility’s existing footprint.
Cannabis is the Catalyst
With Canadian recreational legalization just days away, Landry sees an upcoming catalyst for investors. “With cannabis having the potential to be at least 5x more profitable than produce, the growth of Pure Sunfarms is expected to be the catalyst that drives Village Farms’ share price higher,” the analsyt said.
With a price target of $9.50 CAD per share of VFF on the TSX, Landry’s price target represents approximately 26.8% of expected upside. While some analyst opinions are always wrong, Martin Landry is actually ranked 10th overall for accuracy and returns out of 4,887 Wall Street analysts tracked on TipRanks.
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 Village Farms specifically, be sure to subscribe to Village Farms International Updates here.
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