Globe says Organigram seen at "forefront of innovation"Organigram Holdings Inc (C:OGI)
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Last Close 3/12/2021 $5.51
Monday March 15 2021 - In the News
The Globe and Mail reports in its Saturday, March 13, edition that ATB Capital Markets analyst David Kideckel says the $221-million investment in Organigram Holdings from British American Tobacco is a "significant and positive step-up" for the Moncton-based company. The Globe's David Leeder writes in the Eye On Equities column that Mr. Kideckel continues to rate the shares "sector perform." He elevated his share target to $4.20 from $1.90. Analysts on average target the shares at $3.20. Mr. Kideckel says in a note: "We believe that BAT's investment validates OGI's management focus on quality and innovation, which is in-line with our investment thesis, and together with OGI's forward-thinking investment in Hyasynth Biologicals, a biosynthetic cannabinoid player, position the company at the forefront of innovation in the cannabis industry. ... We have increased OGI's long-term revenue and profitability estimates due to two factors: (1) The collaboration with BAT enhances OGI's competitive strengths and global reach; (2) Based on our thought piece on biosynthesis, biosynthetic cannabinoids may provide lower-cost inputs. As such, OGI's margin outlook may improve due to its investment in Hyasynth