OrganiGram stock has been making a solid recovery this week after analysts at Oppenheimer started coverage on OrganiGram Holdings (TSX:OGI) (NASDAQ:OGI).
Over the course of the past six months or so, the cannabis sector has experienced a bit of a downturn due to a range of issues, but that has not stopped the best-known companies from working on expanding their businesses. One company that has been making some interesting moves over the past few months is OrganiGram Holdings, and this week, OrganiGram stock went on a major rally after an analyst recommendation on Thursday.
Oppenheimer is Bullish
An analyst at Oppenheimer stated that the firm has started research coverage on OrganiGram stock with a ‘perform.’ A ‘perform’ rating at the firm implies that the stock is going to perform at the same clip as the S&P 500 over the course of the next one to one and a half years. The analyst stated that the company is one of the very few cannabis companies that have managed to generate positive EBIDTA earnings over the past few quarters. He added that OrganiGram has also managed to find success in the Canadian market and its financial performance makes it a company that could enjoy strong growth from now on.
The bullish commentary resulted in the rally this week that saw the OrganiGram climb as much as 20%.
The latest development must have come as a relief for OrganiGram investors, who saw the stock tank by as much as 30% in August. The drop in the share price was possibly brought about by the company’s decision to push its launch of CBD derivative products from October to December. The company is based out of New Brunswick, which makes it an exception in the Canadian market.
However, it should be noted that the area is known for the highest adult cannabis usage rates in Canada, and that could prove to be a springboard for higher growth.
Last but not least; OrganiGram Holdings is one of the only four companies that have managed to acquire supply agreements with all 10 provinces in Canada, and that is another factor that should count in its favor in the long run.
At the time of writing, OrganiGram stock is up 6% at $5.06 on the Nasdaq.
What do you think about OrganiGram stock now?
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