RE:RE:National Bank Starts Coverage With Sector Perform RatingARIMA11 wrote: davgro wrote: 2023-05-19 11:15:27 AM ET (MT Newswires)
11:15 AM EDT, 05/19/2023 (MT Newswires) -- National Bank said Thursday that it has moved good natured Products Inc. (GDNP.V) to sector perform and a price target of .25 from under review after citing rapidly growing demand for eco-friendly options with plant-based products well-positioned to benefit.
"The Company is focused on becoming North America's leading earth-friendly product company. It aims to gain the highest share of each customer's total spend on sustainable products to drive a recurring revenue model through customer loyalty," the analysts said.
National Bank said it is monitoring the company's progress and that investments will allow the company to leverage its first-mover advantage.
"Our target for GDNP is based on the average of the 2023E value in our DCF and the 2024E metric in our NAV analysis based on EV-to-Sales," the analysts noted.
Thanks for this. Details on their 2023 revenue estimate would have been nice. They went from $1.25 based on 101M revenues (June 2022) to .75 cents (November 2022) and now .25 cents. :)
BTW, $101M in revenue was accomplished so curious on their revenue estimate for FY2023.
M&A conversions, destocking, and debt to be worked through
M&A has lowered plant-based materials as a percent of revenue (2022 36%,
2021 41% & 2020 74%). Ongoing M&A conversions are expected to take longer
than the 18-month target. Industrial business group (66% of 2022 revenue)
faces reduced demand as thermoforming customers destock high inventory
levels from 2022, which will likely weigh on results in 2023. GDNP aims to
grow Packaging’s contribution over time (31% of 2022 revenue). Debt levels
are high relative to current EBITDA forecasts, but ~37% of that is in mortgages
with associated real estate values likely at or higher than carrying value.
FY2023E is 104M. in Revenue.