Cormark Initiating Coverage ReportCormark Securities initiates with a Buy Rating and a $0.70 target price.
A few highlights from the report:
- Company currently has $16 million in cash and no debt (current implied enterprise value of ~$37 million)
- This compares to a discounted cash flow value of ~$83 million ($102 million equity value including cash) despite using conservative assumptions of a 15% discount rate and 8.5% growth rate
- 8.5% growth rate feels conservative given the scope of opportunity for EU expansion highlighted by the report
- FY 2020 revenue of ~$31 million and positive EBITDA of ~$2 million
Pretty impressive for IMCC that Cormark was able to come out with such a great report during such a period of overall uncertainty. I sense that there is a lot of room for upwards revisions - assumptions feel very conservative, which makes sense given the credibility of the institution that wrote the report.