VIVO declared Top Small Cap LP "We expect VIVO to have one of the highest revenue growth rates of any Canadian cannabis LP over our forecast period”
“Between a string of new cannabis 2.0 products for the rapidly-growing Canadian adult-use market (including some of the first premium concentrates offered in the country) and a medical cannabis import/distribution unit launching in Europe this year, we expect VIVO to have one of the highest revenue growth rates of any Canadian cannabis LP over our forecast period,” Atkinson wrote.
One differentiator, according to the analyst, is that Vivo is one of just six Canadian LS to have multiple licensed sites possessing all available sales licenses, and moreover, Vivo has by far the lowest basic market cap of that group. (The others are Canopy Growth, Aurora Cannabis, Tilray, Aphria and WeedMD.)
Atkinson says that 2020 should be a transformative year for Vivo, with the analyst forecasting 5,475 kg of Canadian market shipments, representing a 90 per cent uptick over 2019, and then shipments of 9,650 kg in 2021.
The analyst thinks VIVO will generate fiscal 2020 revenue of $47.2 million and an adjusted EBITDA loss of $2.6 million and fiscal 2021 revenue of $94.6 million and adjusted EBITDA of $14.7 million.
Cantech, Atkinson