MedReleaf Corp gets $14 Buy Target from GMP
MedReleaf Corp (TSE:LEAF) (OTCMKTS:MEDFF) -whose shares have struggled to regain their IPO price of $9.50 a share since listing on the TSX June 15th – got a boost from GMP’s equities research group who today suggested a buy target of $14 per share.
“With two quarters of cash production costs hovering around $1.55 per gram, the company is solidifying its leading position as a low cost producer,” the research report said. “In addition, MedReleaf’s ability to mitigate the impact from the VAC’s price reimbursement cap is impressive considering the average price per gram decreased ~15% QoQ while company-wide revenues stayed stable.
The research team of Martin Landry, Andrew Partheniou, and Robert Fagan, went on to cite increased unit sales of cannabis and lower production costs of $1.53 reported in the company’s Q4 2017 financial results yesterday.