Some back of napkin price targets for TER
Some thoughts below on the GAGE/ TER deal. Terrascend got and amazing deal buying GAGE. The combined company will break 1 billion in sales 2022 and currently has a market cap of under 2 billion
The guys from GAGE are solid experienced capital markets guys that also built the strongest brand in Michigan. They're killing it.
I believe Bruce and the GAGE team gave TER an amazing deal because they see value in the combined company.
This puts TER in the running for top 3 in Revenue They could potentially net 300,000,000 in the next year That would give them an EPS of 1.33 per share.
Possible multiples / stock price target
15x = 19.95
20x = 26.60
30x = 39.90
40x = 53.20
I'm sure all the companies in the top 5 have similar earnings potential. TER caught my eye because it trades at a 75% discount to CURA for example and it has the ability to be in the same earnings ballpark as CURA TRUL ect. Plus you can enter through Gage with a 15%ish discount
GL