* Following a Thursday corporate update and raise to its fourth-quarter 2023 revenue guidance, Echelon Partners analyst Andrew Semple bumped his target for Indiva Ltd. (NDVA-X), a London, Ont.-based producer of cannabis edibles, to 15 cents from 13 cents, keeping a “speculative buy” rating.
“We are very pleased to see the strong traction of Indiva’s products, highlighting the Company’s repeated success at innovating and manufacturing market leading edible products,” he said.
“With higher revenues, we believe Indiva will see a sequential step up in adjusted EBITDA. Our new Q423 EBITDA forecast is $1.18-million (prev. $0.87-million), reaching levels where the Company should achieve breakeven positive cashflow from operations in Q423 (prior to net working capital changes), and approaching (though not yet achieving) positive net income. With Indiva on the cusp of cashflow generation, further revenue growth should result in material operating leverage to cashflows, resulting in rapid growth in cashflow in 2024 as new product sales grow.”