RE:Analysts' target increases - reason?finginny wrote: I/B/E/S MEAN
Strong Buy
6 Analysts
12-Month Price Target
Mean 6.42
High 7.00
Low 5.50
Target vs. Current50.7%
# of Analysts 6
Over the past 90 days, the consensus price target for OGI has
increased notably from 4.85 to 6.42, a gain of 32.4%.
Maybe because of this? ""The phase 2 expansion includes significant improvements and efficiencies to the company's cultivation and processing systems. Enhancements including a fully automated irrigation system in the phase 2 grow rooms, automated potting, fully automated waste destruction system and automated packaging lines mean immediate and
continuing cost savings as well as increased yields."
I’ll be honest. This level of automation worries me. If true, we will be relying on machines to plant, water, grow, harvest and package the product. How can we ensure top quality product in this type of system? If this is tried and trued technology, no problem. Think automotive plants like Toyota. But we are not a Toyota style company and I am not aware of the proposed systems being in operation at other companies.
So, I won’t factor much productivity gains/cost savings from their plans in the early years of their production.
My guess is that it will take the company YEARS for the company to mature their processes, both manual and automated.
Thoughts?
Marc