RE:RE:RE:RE:On watch for oversold bounce
From a research analyst below. I think this will go down to $0.40 settling there for a while. Nice entry point for a new investor!
MEDIPHARM LABS CORP. – HOLD
• MediPharm reports Q3/20 results: Yesterday (November 16), LABS reported disappointing Q3/20 results for the period ended September 30, 2020.
• Q3/20 revenue was $4.9 mm, which was 69% below of our $16.0 mm forecast and was down almost 90% on a YoY basis.
• The majority of YoY decline was due to lower bulk concentrate volumes, coupled with a decline in net selling prices.
• One bright spot from the quarter was growth in formulated finished goods sales, up 30% to provincial distributors throughout Canada, and increased sales from MediPharm Labs Australia.
• EBITDA loss for the quarter was $7.3 mm and this was significantly below of EBITDA loss forecast of $2.7 mm.
• We are downgrading our recommendation on MediPharm Labs to HOLD from BUY with a new $0.60/share target (previous $1.75). To arrive at our new $0.60 target price, we applied a 12x EV/EBITDA multiple to our new 2022 estimate.