I’m adding MediPharm Labs (MEDIF)
Another company still in expansion mode is MediPharm Labs. The Canadian cannabis extraction company was built for profitable growth and the company remains on path to expand internationally in 2020 while other Canadian companies reign in global ambitions.
For Q4, revenues were up over 200% from last Q4 to C$32.4 million, but revenues did decline from C$43.4 million in the prior quarter. Revenues and profits did take a hit as the Canadian market was oversupplied with wholesale bulk oil, but MediPharm Labs still generated gross profit of C$10.0 million and EBITDA of C$2.7 million.
The company completed a year where revenues reached C$129.3 million and adjusted EBITDA was an impressive C$24.7 million. MediPharm Labs is positioned for growth in 2020 as Cannabis 2.0 products rollout in Canada and the company expands internationally having just obtained a GMP certification by the Therapeutic Goods Administration in Australia.
The stock is down to near $1 despite these positive results. With a market cap of only $155 million, MediPharm Labs is cheap in comparison to expectations for revenue growing to nearly $120 million or C$170 million this year and up to $170 million in 2021. As more retail stores open in Canada and Cannabis 2.0 product sales expand, the cannabis extraction company will see revenues rebound making the stock a bargain down here near $1.
Indeed, the stock boasts a confident Strong Buy consensus from the Street. TipRanks shows that the average analyst price target stands at $4.37, which implies over 300% upside over the next 12 months. (See MediPharm stock analysis on TipRanks)
https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/3-cannabis-stocks-set-thrive-180514972.html