M|Partners initiates a coverage of Valens with a BUY rating

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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.

Investment thesis

  • 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

This article is written and published by The Cannabis Stock

Disclaimer : The Cannabis Stock wants to promote the cannabis market with the best articles and news on the market. The Cannabis Stock does not recommend selling or buying any of the company mentioned and is not responsible for any losses that may result.

The Cannabis Stock and its employees may from time to time own shares of the companies named in the articles. All the facts reported by the cannabis stock are information that comes directly from the companies, from their website or on Sedar and are only published as information.

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