Globe says new coverage rates Valens Groworks "buy" ...Valens Groworks Corp (C:VLNS)
Shares Issued 122,399,726
Last Close 1/21/2020 $3.88
Wednesday January 22 2020 - In the News
The Globe and Mail reports in its Wednesday, Jan. 22, edition that M Partners analyst Paul Piotrowski says Valens Groworks ($3.88) is "built to lead Cannabis 2.0." The Globe's David Leeder writes in the Eye On Equities column that Mr. Piotrowski began coverage on Valens with a "buy" rating and $7.80 share target. Analysts on average target the shares at $8.56. Mr. Piotrowski says in a note: "VLNS runs a very high margin business model and is one of the few profitable cannabis companies. ... Valens continues to trade at a discount to its peers, while in our view being the best equipped to succeed in Cannabis 2.0. Valens trades at 6.2 times 2020 [earnings before interest, taxes, depreciation and amortization] vs. peers at 16.5 times 2020 EBITDA. We believe the discount is unwarranted as Valens has consistently reported strong revenue growth and margins and is the only cannabis company in Canada generating free cash flow. As Valens continues to report strong quarters, shares should rerate closer to its peers." The Globe reported on Nov. 8, 2019, that Desjardins Securities analyst John Chu had commenced coverage on Valens with a "buy" rating and $8 share target. The shares could then be had for $3.15.