GREY:FFLWF - Post by User
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BrickmantoStockon Feb 02, 2020 3:30pm
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Analists highlights
Analists highlights The analysts highlight the company’s strategic ties to Alimentation Couche-Tard (ATD-B.TO). The global retail operator announced a deal for 9.9 per cent of Fire & Flower’s equity for $26 million in July, with the potential to up its stake to 50.1 per cent of the company for $380 million. The partnership is aimed at helping Fire & Flower develop its digital retail platform and expand its store network.
“We expected a move to a more privatized model in Ontario, and see Fire & Flower as being a large beneficiary with already 13 strategic lease locations in high traffic areas (mainly in Toronto) ready to go,” Stifel analyst Justin Keywood wrote in a recent note to clients. “We see a compelling investment case with the growth profile ahead and strategic support from Couche-Tard.”
Kideckel praised the company for opening 46 stores ahead of its own timeline. He expects more stores and increased spending from cannabis 2.0 products like edibles and vapes to increase sales to $160 million in 2020, from $58 million in 2019.
The company expects to expand its store network to 135 locations in 2021.