The Globe and Mail reports in its Thursday, May 21, edition that
Delta 9 Cannabis, having achieved profitability, was upgraded to "speculative buy" from "hold" by Canaccord Genuity analyst Kimberly Hedlin. The Globe's David Leeder writes in the Eye On Equities column that Ms. Hedlin boosted her share target to 75 cents from 60 cents. Analysts on average target the shares $1.05. Ms. Hedlin says in a note: "With revenues of $11.8-million, Delta 9's first quarter results represented an inflection into positive EBITDA and operating cash flows, driven by pricing improvements and strong Grow Pod sales. We believe a pipeline of Grow Pod projects will continue to boost revenues over the next couple of quarters while retail store growth should provide a conduit for wholesale distribution over the coming 24 months. ... In our view, key upcoming catalysts include provincial distribution agreements in Ontario, additional retail locations in AB and MB, and new Grow Pod projects in both Canada and the U.S. In our view, with manageable debt levels ($20-million maturing in two to more than 10 years), Delta 9 has no major near-term balance sheet concerns that should act as an overhang on the stock."
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