EXCLUSIVE: ATB Capital Markets Signals 2024 Hidden Gems In Canadian Cannabis
Portfolio Pulse from Joana Scopel
ATB Capital Markets highlights deep-value opportunities in Canadian cannabis small-cap stocks, emphasizing overlooked companies like High Tide Inc (HITI) and Nova Cannabis Inc (NVACF) for their positive free cash flow and low trading multiples. The sector is expected to grow despite challenges, with a 10.9% increase forecasted for 2024 and a 9.2% CAGR through 2031. Retailers are predicted to outperform LPs due to scale advantages. Decibel Cannabis Co Inc. (DBCCF) and SNDL Inc (SNDL) are also noted for their market positions and valuations.
December 13, 2023 | 10:22 pm
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NEUTRAL IMPACT
Canopy Growth Corp is mentioned as a large name in the cannabis sector that has received much focus, potentially overshadowing small-cap opportunities.
While CGC is mentioned, the focus is on small-cap stocks, which could imply a neutral impact on CGC as the market explores these other opportunities.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
Tilray Brands Inc is similarly mentioned alongside Canopy Growth as a large cannabis company that may be diverting attention from small-cap stocks.
TLRY is mentioned in the same context as CGC, suggesting a neutral impact as the article promotes small-cap stocks instead.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 30
POSITIVE IMPACT
Decibel Cannabis Co Inc is favored for its strong market share, particularly in pre-rolls, growth potential, and attractive valuation.
DBCCF is specifically mentioned as a top LP with a favorable market position and valuation, suggesting a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
High Tide Inc is highlighted as a leader in the cannabis industry, generating positive free cash flow and trading at low multiples, making it an attractive investment.
HITI is directly mentioned as a top pick with strong financials and growth potential, likely leading to positive investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Nova Cannabis Inc is identified as a leader in the industry with positive free cash flow and low trading multiples, presenting a compelling investment opportunity.
NVACF is praised for its financial performance and market position, which should attract investor interest and potentially boost its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
SNDL Inc is noted for trading at a discount to net cash and investments, indicating a potential undervaluation.
SNDL's mention of trading at a discount suggests it may be undervalued, which could lead to increased investor interest and a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70