This analyst loves Village Farms

Beacon Securities analyst Doug Cooper maintained a “Buy” rating and US$5.50 target on Village Farms International (Village Farms International Stock Quote, Chart, News, Analysts, Financials NASDAQ:VFF) in a May 11 update after record first-quarter results.

Village Farms reported revenue of $50.2-million, up 27% year-over-year, while Adjusted EBITDA rose to $9.9-million from $4.5-million. Adjusted gross margin increased to 50.3% from 46.9%, and the company reported positive net income for a fourth straight quarter.

Cooper said growth was driven by international medical cannabis sales to Germany and stronger results in the Netherlands. Cannabis Adjusted EBITDA was $10.2-million, representing a 20.5% margin.

“We believe the Canadian market is still exhibiting positive fundamentals with mid-single digit growth, shrinking competition and stable pricing,” Cooper said, noting Village Farms remains a top-five Canadian player and the No. 1 flower producer.

The company ended the quarter with $55-million in cash and $20-million in net cash, despite paying cash taxes, funding capital spending and repurchasing shares.

Cooper said Village Farms’ capacity expansions in British Columbia and the Netherlands should support incremental revenue in the second half of 2026, with the full run-rate impact expected in the second half of 2027.

“Given its experience as a grower, which has resulted in its position as one of the lowest cost greenhouse producers, as well as the quality of its product, we believe VFF is one of the best positioned cannabis companies in the world,” Cooper said.

He expects Village Farms to generate Adjusted EBITDA of $59.7-million on revenue of $259.0-million in fiscal 2026, improving to $67.8-million on revenue of $289.1-million in fiscal 2027.

Disclosure: Tara Whittet owns shares of Village Farms.

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