AltaCorp analyst Kideckel rates OGI an “Outperform” with 66% return

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AltaCorp Capital analyst Kideckel says that derivatives should improve OGI’s growth and margin outlook, as they will form 16 percent of OGI’s sales in fiscal 2020 and 30 per cent in fiscal 2021 (year ending August).

The analyst says that while gross margins may be under pressure over the near term due to cost ramp-up, revenue from the company’s derivatives segment will likely be margin accretive over the long-term.

We continue to have a bullish outlook on OGI, which is one of the premier names in the Canadian cannabis sector. Our optimistic view is mainly driven by its robust profitability, strong balance sheet, focus on branding through innovations, strong management team, and good governance, as well as their forward-thinking investment in Hyasynth

says Kideckel

Kideckel rates OGI an “Outperform” with a target of $13.15, representing a projected return of 66 %

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