According to Raymond James. GLTA
After undertaking a quantitative analysis of Village Farms International Inc., Raymond James analyst Rahul Sarugaser concluded the Canadian cannabis producer is more than 60 per cent undervalued “using whichever basis for comparison or peer sub-group we throw at it.”
“We don’t limit our analysis to cannabis industry peers, but extend it to large, consistently +EBITDA consumer packaged goods (CPG) industry stalwarts with 40-per-cent gross margins and still find VFF vastly discounted,” he added.
Mr. Sarugaser maintained a “strong buy” recommendation for Village Farms shares, citing its “massive undervaluation relative to both cannabis peers and strong CPG peers,” with a US$26 target (unchanged). The average is US$14.50.