TSXV:CUB - Post Discussion
Post by
Robr15 on Aug 11, 2022 11:35am
New price target
CubicFarm Systems Speculative-Buy Rating Maintained by Stifel GMP Following Update; Price Target Cut to C$0.70
2022-08-11 11:32:07 AM ET (MT Newswires)
11:32 AM EDT, 08/11/2022 (MT Newswires) -- Stifel GMP on Thursday kept its speculative-buy rating on CubicFarm Systems (CUB.TO) in place while reducing its price target to C$0.70 from C$0.95 after the indoor-farming company offered an update on its operations.
"CubicFarm provided a corporate update this morning indicating a delay in its first FreshHub delivery to 4Q23E (prior: 2Q23E)," analyst Ian Gillies said in a note. "At this juncture, we have taken a more conservative view and put the FreshHub delivery in 1Q24E. As a result, 2023E revenue is decreased by 23.5% to $49 mm. The company's liquidity position has been modestly improved following the $10.6 mm financing in June 2022, but we estimate another financing is needed in early 2023E, if sales cadence and cash burn remain unchanged. We are lowering our TP to $0.70/sh (prior: $0.95/sh) largely due to lower estimates while our Spec. Buy rating remains unchanged."
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