Post by
lscfa on Mar 10, 2021 10:16am
Bloom raises target price
We have updated our forecasts based on 4Q-2020 results and expectation of increased sales and S,G&A as COVID-19 abates and Miravo moves forward with multiple product launches. We are also rolling our valuation model ahead by one year. As a result, our target price increases to $2.60 (was $2.30), and our rating remains BUY (Speculative risk). Target price based on average of DCF (12% discount rate) and 6x 2022E adjusted EBITDA. 6x reflects high debt level: C$126.3 MM; 5.2x net debt/2021E EBITDA) – continued de- leveraging may justify higher multiples in future periods.