Original-Research: Cantourage Group SE (von NuWays AG): Buy
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Original-Research: Cantourage Group SE - from NuWays AG
05.09.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to Cantourage Group SE
Company Name: Cantourage Group SE
ISIN: DE000A3DSV01
Reason for the research:
Recommendation: Buy
from: 05.09.2024
Target price: EUR 10.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
FY24 guidance issued, growth to remain stellar
Topic: Cantourage issued a bullish FY24 sales growth guidance, carried by
strongly increased demand for medical cannabis following the partially
legalization at the beginning of April.
Cantourage expects FY24 sales of EUR 37-43m (eNuW: EUR 43m). Above all, the
strong growth is driven by the partial legalization of medical cannabis in
Germany at the end of April. With this receiving a prescription for medical
cannabis became as easy as for ibuprofen 600. Cantourage is also recording
strongly accelerating demand in the UK. Since April the group recorded
continued sequential improvements, putting the upper end of the FY guidance
well in reach, in our view. In August alone, Cantourage recorded sales of EUR
4.9m, a 189% yoy increase. During the first eight months of FY24, sales
stood at EUR 24.9m (+62% yoy).
While management has only stated to be expecting a positive FY24 EBITDA, we
remain confident that the company will be able to meet our EUR 1.8m estimate.
This should be driven by the positive operating leverage and despite needed
investments to facilitate the strong growth, including increasing production
capacities at its processing site, broadening of its supplier network and
start up costs for the partnership with Portocanna, a Portuguese medical
cannabis processor.
Cantourage looks well prepared for strong growth beyond 2024. During the
past two years, the company completed several initiatives which should
enable sales of EUR 100m. It's global supplier network includes >60 growers,
through which Cantourage can offer a broad set of flowers with little
cluster risk. Thanks to the recently signed partnership with Portocanna,
roughly 14t of flowers can be processed annually. Its own telemedicine
platform, telecan°, puts the company in direct contact with patients, which
can receive advice on cannabis therapies and obtain prescriptions in an
uncomplicated manner.
Growth potentials supported by market developments. Several years after the
legalization of medical cannabis in US states, the percentage of patients
(vs. total population) reached roughly 4%. Applying similar assumptions to
Germany, 3.3m patients seem possible (vs. 0.25m before April). Assuming
consumption twice a week and an ASP of EUR 7.5/g, this would create a EUR
1.2-1.4bn market opportunity.
We confirm our BUY rating with an unchanged EUR 10 PT based on DCF.
You can download the research here: http://www.more-ir.de/d/30723.pdf
For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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1981905 05.09.2024 CET/CEST
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