The Globe and Mail reports in its Thursday, March 21, edition that Canaccord analyst Bobby Burleson began coverage of Plus Products ($5.86) with a "speculative buy" rating. The Globe's David Leeder writes that Mr. Burleson is the lone analyst covering the stock. He targets the shares at $8. Mr. Burleson says in a note: "Through its popular line of gummies, Plus has attained leading share of the legal edibles market in California (10 per cent in the second half of 2018), arguably the world's most competitive. We believe Plus will be able to leverage this leadership into continued strong growth for existing SKUs and gains in additional edibles categories, where the company is poised to convert shelf space, brand awareness, and operational excellence into penetration of baked goods and mints. We also expect initial state expansion into additional geographies is imminent, prioritizing states with legal recreational sales. We expect FL, NY, MA, MI and NV to be the most likely near-term state expansion targets, with Canada a focus internationally. California alone should represent a roughly $1-billion edibles opportunity by 2022. We are also encouraged by progress on Plus's product and market expansion plans."
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