Cannara Biotech is a buy, this analyst says

In an April 6 initiation report, Haywood analyst Neal Gilmer launched coverage of Cannara Biotech (Cannara Biotech Stock Quote, Chart, News, Analysts, Financials TSXV:LOVE) with a “Buy” rating and a $3.00 target, saying the company’s steady market share gains, profitable growth and disciplined expansion strategy set it apart in the Canadian cannabis sector.

Gilmer said Cannara has continued to post double-digit revenue growth while expanding profitably, supported by a measured cultivation buildout and a strong position in Quebec.

“Cannara Biotech continues to drive market share gains and post double-digit revenue growth,” he said, adding that the company’s new processing centre at Valleyfield remains on track in 2026 and should support cultivation expansion over the next several years.

Cannara held the No. 7 market share position in Canada during the first quarter of fiscal 2026 with a 4.1% share, improving more recently to No. 6 nationally at 4.4%. In Quebec, the company ranked first with a 14.7% retail share and a 29.7% share of the vape category. Gilmer said those results demonstrate the strength of Cannara’s brands and give the company a solid foundation for further growth.

He also pointed to Cannara’s Quebec operating footprint as a competitive advantage, with two facilities benefiting from some of the lowest electricity rates in Canada. Combined with a relatively limited number of licensed producers and brands in the province, Gilmer said that creates a favourable backdrop for low-cost production and competitive pricing.

Gilmer highlighted Cannara’s consistency, noting the company has posted 19 consecutive quarters of positive Adjusted EBITDA and 13 straight quarters of positive operating cash flow. He said that level of execution is rare in the Canadian cannabis industry and supports confidence in the company’s longer-term outlook.

On expansion, Gilmer said Cannara has scaled annual cultivation capacity to 50,000 kilograms and plans to double that to 100,000 kilograms over time through a $30-million capital program spread over three years. The near-term focus is on post-processing expansion in 2026, which should allow three new grow rooms to be activated in 2027, adding about 15,000 kilograms of capacity for roughly $3-million in capital spending.

He said Cannara ended the most recent quarter with $16.5-million in cash and no material near-term debt maturities, while earlier debt reduction transactions have improved the balance sheet and positioned the company to attract more investor attention.

Gilmer said Cannara should generate Adjusted EBITDA of $34.1-million on revenue of $126.7-million in fiscal 2026, improving to Adjusted EBITDA of $39.4-million on revenue of $143.9-million in fiscal 2027.

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