Added to YB: 2025-11-10
Pitch date: 2025-11-06
LOVE.TO [bullish]
Cannara Biotech Inc.
+7.41%
current return
Author Info
Aurelion Research is a research analyst with a passion for markets, specializing in high‑conviction ideas across shipping, offshore drilling, and thematic equity research. Sign up for the newsletter.
Company Info
Cannara Biotech Inc., together with its subsidiaries, engages in the indoor cultivation, processing, and sale of cannabis and cannabis-derivative products in Canada.
Market Cap
CAD 169.9M
Pitch Price
CAD 1.62
Price Target
5.40 (+210%)
Dividend
N/A
EV/EBITDA
7.53
P/E
15.82
EV/Sales
1.61
Sector
Personal Care Products
Category
value
A Scalable and High-Growth Cannabis Operator
LOVE.TO: Cannabis producer w/ industry-leading ~40% gross margins & mid-20s EBITDA margins via 3.7¢/kWh Hydro-Québec contract (half Ontario rates) locked to 2027. Scaling Valleyfield from 33.5k kg to 50k kg FY26, eventually 100k kg capacity. 13% SQDC share. Trading 3x FY25E EBITDA vs 8-10x peers. Mgmt targets 45% margins by FY29, $59.6M EBITDA FY28 ($0.32 EPS). 9-10x multiple = $5.40-$6.00 PT (200-240% upside). Risks: 2027 power reset, provincial pricing pressure, vape launch timing, 50% insider ownership concentration.
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