Good Natured Products Inc. V.GDNP

National Bank Starts Coverage With Sector Perform Rating

[davgro]

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 $0.25 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.

[ARIMA11]

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 $0.75 cents (November 2022) and now $0.25 cents. :) BTW, $101M in revenue was accomplished so curious on their revenue estimate for FY2023.

[ARIMA11]

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