On Wednesday, Flora Growth Corp. (NASDAQ:FLGC) saw its price target significantly increased by Roth/MKM from $1.00 to $7.00, while the firm retained a Buy rating on the stock. The adjustment follows Flora Growth's fourth-quarter performance, which was reported to be in line with its third-quarter results. The company has completed goodwill impairments from legacy operations, indicating a shift towards becoming a more streamlined and efficient organization.
The analyst noted Flora Growth's strategic early emphasis on the German market, citing the company's medical sales beginning in 2017. Additionally, the late 2022 acquisition of FGH has been positioned as a strategic move to leverage upcoming legislative changes in Germany, where home cultivation of cannabis started on April 1, 2023.
Flora Growth's largest revenue contributors, including JustCBD, Phatebo, and Vessel, have been highlighted for reaching approximately adjusted EBITDA break-even. The company's financial health and strategic positioning have been key factors in maintaining the Buy rating.
The price target revision to $7.00 reflects a significant increase from the previous target and is attributed to a stock split and revised lower estimates. The analyst's comments suggest a positive outlook for Flora Growth, as the company continues to adapt and capitalize on market opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.