In a recently released analyst research report, PI Financial Corp. equity analyst Devin Schilling lowered his price target on shares of diversified cannabis investment company Canopy Rivers Inc. (TSXV:RIV) (OTC:CNPOF), while reiterating his bullish buy rating with a price target that still suggests some big upside to come.
Just this morning, Canopy Rivers portfolio company TerrAscend Corp. (CSE:TER) (OTC:TRSSF) signed a major Canadian cannabis extraction agreement with Indiva Ltd. (TSXV:NDVA) (OTC:NDVAF) where TerrAscend will commit to delivering, on an annual basis, a minimum of 800 kg of dry flower to Indiva for extraction.
Indiva will be responsible for extraction and refinement services employing its 70-tonne ethanol extraction system and will return the final product to TerrAscend in bulk formulated oil, or in distillate form.
Cut back from his $9.00 CAD per-share price target, Devin Schilling’s new RIV price target of $8.00 CAD per share implies a potential upside of approximately 196.30% based on the last traded price of $2.70 CAD per share on the TSXV.
Despite the fact that Canopy Rivers’ portfolio has over $100 million in publicly traded investments, and they all seem to be doing well, according to Cantech Letter, “Schilling thinks RIV will post net income of negative $10.9-million on Total OI of $11.8-million in fiscal 2020. He expects those numbers will improve to net income of negative $3.58-million on Total OI of $16.2-million the following year.”
Be sure to subscribe to updates here so you never miss an important development.
Get Real-Time Updates from MJobserver.com