Built to lead cannabis 2.0
Analyst Paul Plotrowski of M|Partners started a cover of Valens Company (VLNS-TSXV), a vertically-integrated cannabis company focused on extraction processing.
According to Mr. Plotrowski:
Valens is uniquely positioned to succeed in cannabis 2.0 and continue to generate cash flow and return capital to shareholders.
- Valens has several extraction and white label agreements in place, providing clear revenue and cash flow viisibility for 2020.
- Valens run a very hight margin business model and is one of the few profitable cannabis companies.
- Valens is differentiated from its peers in both extraction and white label product formulation expertise.
- Valens transition to white labeling and international opportunities is fully funded and nearly complete.
- Valens shares trade at a discount to its peers.
M|Partners initiates a coverage on Valens Company (VLNS-TSXV) with a BUY rating and $7.80 target price basede on 14x 2020 EBITDA.
The last price of Valens at the time of the publication is $3.62
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