Original-Research: Cantourage Group SE (von NuWays AG): BUY
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Original-Research: Cantourage Group SE - from NuWays AG
06.12.2024 / 09:00 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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Classification of NuWays AG to Cantourage Group SE
Company Name: Cantourage Group SE
ISIN: DE000A3DSV01
Reason for the research: Update
Recommendation: BUY
from: 06.12.2024
Target price: 11.50
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Full steam ahead, FY24 guidance raised; PT up
Topic: Cantourage raised its FY24e guidance following continued sequential
growth throughout Q4 with November sales reaching EUR 7.2m, exceeding the
previously strongest quarter by 31%.
Cantourage announced a particularly strong November sales figure of EUR 7.2m,
a 31% increase compared to October (previous annual high). With this, Jan.
to Nov. sales stand at EUR 42.9m, a roughly 80% increase compared to the full
year 2023 figure. The driver behind this strong growth is the
reclassification of medical cannabis (no longer qualified as a narcotic) in
Germany, which took effect at the end of April and hence made obtaining a
prescription notably easier. This is also visible in the estimated number of
cannabis patients, which is seen to have doubled to 0.5-0.6m. Further,
Cantourage is also experiencing a sharp increase in demand at its treatment
facility in UK.
Taking into account continued strong demand throughout the remainder of the
year as stated in yesterday's press release, the company should be on track
to reach Q4 sales of some EUR 19m (eNuW), a significant acceleration compared
to before the legislative changes (Q1 sales of EUR 6.2m). The strong sales
development is seen to increasingly feed down to the bottom line with a Q4
EBITDA margin expectation of 8.1% (eNuW) compared to a slightly negative
figure last year.
More importantly, we also expect Cantourage to begin generating positive
free cash flows. For FY24e, the company is seen to report EUR 1.5m, a notable
improvement compared to FY23's EUR -3.1m.
As a result of the strong operational ytd. performance management increased
its FY24e guidance, now expecting EUR 46-50m sales (eNuW EUR 49.2m) and EUR 3-4m
EBITDA (eNuW EUR 3.6m); old guidance: at least EUR 40m sales and EUR 2m EBITDA.
While EBIT should still be slightly negative, it is important to note that
is only due to the planned amortization of the operating GmbH value that was
transferred into the SE as part of the listing in 2022.
Business to further scale during FY25e and beyond. Thanks to unbroken demand
on the back of growing patient numbers and further de-bottlenecking at its
processing sites, Cantourage should be well positioned to remain at the
forefront of the dynamic market, reflected by our sales growth estimates.
BUY with a new EUR 11.50 PT (old: EUR 10.00) based on DCF.
You can download the research here: http://www.more-ir.de/d/31501.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
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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2045487 06.12.2024 CET/CEST
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