Following preliminary Q2 results, Industrial Alliance Securities analyst Nav Malik is maintaining his “Buy” rating Harvest Health and Recreation (Harvest Health and Recreation News, Stock Quote, Chart CSE:HARV).
This morning, HARV released estimated and unaudited revenue numbers for its second quarter, saying it expects the topline will fall between $75-million and $77-million, which would represent an improvement of at least 47 per cent over the same period last year.
Malik says this figure range is significantly above the $59-million he had modeled
“Harvest continues to aggressively expand its operational footprint, leading to strong growth in financial performance,” the analyst writes. “The Company remains on track to execute on its growth strategy and build one of the largest vertically integrated networks in the US.”
Harvest Health Stock has big upside, the analyst says
In a research update to clients today, Malik maintained his “Buy” rating and one-year price target of $19.00 on Harvest Health, implying a return of 146.1 per cent at the time of publication.
Malik thinks HARV will post EBITDA of $70-million on revenue of $354-million in fiscal 2019. He expects those numbers will improve to EBITDA of $286-million on a topline of $914-million the following year.
The analyst says acquisitions and organic expansion have led to the growth at HARV.
“In addition to acquisitions, Harvest continues to expand its retail footprint by operationalizing existing licenses, Malik adds. “In addition, we believe Harvest’s wholesale business is performing well.”
About Harvest Health & Recreation, Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation, Inc. is a multi-state cannabis operator (MSO) and vertically-integrated cannabis company. Subject to completion of announced acquisitions, Harvest will have one of the largest footprints in the U.S., with rights to more than 210 facilities, of which approximately 135 are retail locations, and more than 1,695 employees across 18 states and territories. Since 2011, the company has been committed to expanding its Harvest House of Cannabis retail and wholesale presence throughout the U.S., acquiring, creating and growing leading brands for patients and consumers nationally and continuing on a path of profitable growth. Harvest’s mission is to improve lives through the goodness of cannabis and is focused on its vision to become the most valuable cannabis company in the world.