RE:Scotia still has $10.00 target after Q4 Year end !! 455% ROI1hot-techwoman wrote: HEXO Corp. (HEXO-T) Cannabis Price 1-Yr. Target 1-Yr. Return Div. (Curr) Div. (NTM) Yield (Curr) Rating Risk October 29, 2021 C$1.80 C$10.00 455.6% C$0.00 C$0.00 0.0% Sector Perform Speculative
Latest Research (November 01, 2021): OUR TAKE: Negative. A mixed Q but liquidity concerns to remain an overhang.HEXO reported mixed FQ4/21 results on Friday with revenue ahead ($39M vs. $35M) and EBITDA behind (-$13M vs. -$6MM) our expectations. However, with shares down ~12% on the day, it seems fair to say that the "going concern" flag was the focus of the market. For reference, this represents the second time within six quarters that auditors have attached this opinion to HEXO's financials. Although we believe there are a few positives attached to the story (a new CEO with a strong operating background & the addition of Redecan), we expect shares to remain under pressure while liquidity concerns persist. We have updated our model for: (1) potential dilution that may occur in a recapitalization event, and (2) the likely need for additional cash inflows; the result is a material decrease in our target price. While we believe that both represent negative headwinds to NT share performance, our concern on shifting our current view (SP) remains centered around recent share performance (down ~37% since August 3), which has likely captured much of the downside associated with HEXO's capital structure.
WOW !!
Looks to be a BUY at this level I would think!
Stock has been over sold and over reaction to last Q4 year end. IMO.