Neal Gilmer, an analyst from Haywood, reiterated the Buy rating on Decibel Cannabis Company. The associated price target remains the same with C$0.25.
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Neal Gilmer has given his Buy rating due to a combination of factors that highlight Decibel Cannabis Company’s strong financial performance and growth potential. The company reported impressive Q2 financial results, showcasing significant year-over-year revenue growth, partly driven by the AgMedica acquisition. Additionally, Decibel achieved solid margins and effective cost management, resulting in an EBITDA that exceeded expectations.
Decibel’s financial health is further underscored by its ability to generate $2.2 million in free cash flow during Q2, with a positive outlook for $20 million in free cash flow by 2025. The company’s balance sheet remains robust, with a healthy cash position and manageable debt levels, most of which are not due until 2027. Despite the strong Q2 performance, Neal Gilmer has maintained a slightly conservative forward estimate, yet remains confident in the company’s management and its guidance, reinforcing the Buy recommendation with a target price of $0.25.