Buy Organigram for big returns, Haywood says

Organigram’s (Organigram Stock Quote, Chart, News, Analysts, Financials TSXV:OGI) growth is nothing to weed out, says Haywood Capital Markets’s analyst Neal Gilmer, who’s holding firm on his $2.50 target as the cannabis producer boosts margins, deepens partnerships and rolls toward global expansion.

Haywood has updated its forecast after the latest quarter, with a small boost to revenue expectations thanks to a strong Q2, while EBITDA stays the same. For 2026, it’s raising its EBITDA estimate by 15% due to better margins and cost savings. The firm is keeping its \$2.50 price target.

“We recommend buying shares at current levels,” Gilmer said in a May 13 update. “OGI further solidified its balance sheet at a notable premium to market with the investment from BAT that is now complete and better positions it to execute on its growth strategy. In an industry with limited access to capital, we view an increased investment from a strategic partner positively, ahead of new product launches that should drive market share and revenue growth next year while also insulating it from the challenging market with a strong cash position.”

Gilmer thinks that Organigram will do $18.2-million in Adjusted EBITDA on $246.8-million in revenue in fiscal 2025. He expects those numbers to improve to $30.1-million in Adjusted EBITDA on $273.3-million in revenue in fiscal 2026.

Organigram is a licensed cannabis producer based in Moncton, New Brunswick. It partnered with British American Tobacco in 2023 to develop new cannabis products and also bought The Edibles and Infusions Corporation the same year, adding an edibles facility in Manitoba.

Gilmer said Organigram has strengthened its position in the Canadian cannabis market and is well-positioned for international growth following a series of strategic investments and acquisitions.

Organigram announced in February that it had completed the final part of a previously announced $124.6-million investment from BT DE Investments Inc., a subsidiary of British American Tobacco. In this third and final round, the investor bought about 7.6 million common shares and 5.3 million preferred shares for C$3.22 per share, bringing in roughly US$29-million (C$41.5-million) in new funding.

“Organigram revitalized its product portfolio, driving solid revenue growth and expanded market share in Canada,” he said. “The latest investment from BAT will help leverage that momentum, support global expansion, and further strengthen the company’s balance sheet. Most recently, the acquisition of Motif Labs solidifies Organigram as the market leader in Canada and significantly improves its position in the vape category.”

In the company’s quarterly results press release Organigram CEO Beena Goldenberg said strong brand performance and growing international demand helped drive record revenue this quarter, with more growth expected in the months ahead.

“Our record revenue this quarter reflects the strength of our brands and our ability to execute across both domestic and international markets,” Goldenberg said. “We are unlocking meaningful global growth potential — from increasing sales into key international markets like Germany to our entrance into the U.S. hemp-derived beverage space. We expect this momentum to continue as we strengthen our leadership in Canada and head into the seasonally stronger back half of the year.”

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