Organigram (ORGMF) has been among the few cannabis stocks that have a positive YTD (year-to-date) return of 15.6% as of May 16. The company announced its portfolio of offerings for the recreational cannabis consumers (HMLSF) following legalization in Canada. The offerings include organically cultivated cannabis under the Ankr Organics brand, cannabis for experienced users along with premium strains under the Edison brand, cannabis for value-oriented (price sensitive) consumers under the Trailer Park Buds brand, and medical cannabis under the OrganiGram brand.
The current consensus mean ratings for Organigram on May 16 stood at 1.5 with an overall recommendation of a “strong buy” on the stock for the next 12 months. The mean ratings for the company improved from 1.6 in April, which indicates that analysts are more bullish on the stock month-over-month.
Out of the six analysts surveyed by Reuters, three had a “strong buy” on the stock, one more than the last month, while three analysts maintained a “buy” on the stock.
With the consensus ratings improving on the stock month-over-month, the price target also rose to 6.6 Canadian dollars, or 1.5%, from 6.5 Canadian dollars a month ago. The price target translates into an upside of ~39% from the closing of 4.7 Canadian dollars on May 16. The median price target, however, was much higher at 7 Canadian dollars for the next 12 months.
Next, we’ll discuss ratings and price target for Hydropothecary (HYYDF).