A little promotion never hurts Globe says new coverage rates EnWave "outperform"
EnWave Corp (C:ENW)
Shares Issued 111,219,755
Last Close 2/11/2020 $1.46
Wednesday February 12 2020 - In the News
The Globe and Mail reports in its Wednesday edition that Raymond James analyst Steve Hansen commenced coverage of EnWave with an "outperform" rating and $2.50 share target (two cents above the consensus) on Tuesday, seeing it "poised to demonstrate very robust revenue/EBITDA [earnings before interest, taxes, depreciation and amortization] growth throughout our forecast horizon." The Globe's David Leeder writes that Mr. Hansen notes his share target represents a 72-per-cent return from Friday's close. Mr. Hansen says in a note: "While EnWave shares have historically traded in tandem with the firm's reported revenue progression (TTM), we note this relationship has significantly broken down in recent months -- a divergence that, we believe, presents an attractive entry point opportunity given our financial outlook. While difficult to isolate, we attribute the bulk of EnWave's recent share price decline to the swift deterioration in outlook for the Canadian cannabis industry -- one where EnWave has admittedly increased revenue exposure over the past two years. However, as our revenue projections suggest, we continue to see outsized revenue growth going forward, primarily driven by the firm's NutraDried division."
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