Organto Foods, the Consumer Goods sector company, was revisited by a Wall Street analyst today. Analyst from Atrium Research maintained a Buy rating on the stock and has a C$1.00 price target.
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Atrium Research has given its Buy rating due to a combination of factors that highlight Organto Foods’ strong financial performance and growth potential. The company reported an impressive 189% year-over-year revenue growth in the third quarter, surpassing Atrium’s revenue estimate of $13.5 million by achieving $15.1 million. This marks the fourth consecutive quarter where Organto Foods has achieved over 100% year-over-year revenue growth, indicating a robust sales momentum driven by both new and existing customers.
Despite the mixed results in profitability, with gross margin and EBITDA falling short of expectations, the company’s operating costs have been managed efficiently. The recent restructuring efforts, including the sale of subsidiaries, have led to a more stable operating expense profile and a significantly improved balance sheet. These positive developments, alongside the company’s continued sales growth, underpin Atrium Research’s decision to maintain a Buy rating with a target price of $1.00 per share.