In a report released yesterday, Neal Gilmer from Haywood maintained a Buy rating on OrganiGram Holdings (OGI – Research Report), with a price target of C$2.50.
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Neal Gilmer has given his Buy rating due to a combination of factors including OrganiGram Holdings’ strong financial performance and strategic acquisitions. The company’s recent acquisition of Motif has significantly boosted its revenue, which exceeded expectations for the second quarter of fiscal 2025. This acquisition, along with international growth, has led to a notable increase in revenues and an improvement in EBITDA.
Additionally, OrganiGram has revised its expected synergies upwards to $15 million, which is anticipated to enhance margins into fiscal 2026. The company’s financial health is further supported by a solid cash position, bolstered by a recent tranche from BAT that added $41.5 million to the balance sheet. Neal Gilmer’s analysis also includes a positive outlook for 2026, with increased EBITDA estimates due to higher gross margins and synergy savings, maintaining a target price of $2.50 based on a 1.6x EV/Revenue multiple.
In another report released yesterday, Alliance Global Partners also maintained a Buy rating on the stock with a C$3.00 price target.
OGI’s price has also changed moderately for the past six months – from $1.590 to $1.280, which is a -19.50% drop .