MedReleaf Corp Receives a Buy from Clarus

MedReleaf Corp (TSX: LEAF), the NA sector company, was revisited by a Wall Street analyst yesterday. Analyst Noel Atkinson from Clarus rated MedReleaf Corp (TSX: LEAF) a Buy.

Atkinson observed:

“We believe this could be a transformative acquisition for Aurora. The company has struggled to add capacity and has been hamstrung by lack of supply in recent quarters. It received what appeared to us to be a small adult-use supply agreement order from the SAQ (5,000 kg/year) in Quebec even though Aurora is constructing two facilities in that province. However, what it does have is potential distribution reach – in Canada via its minority stake in liquor store operator Alcanna (TSX: CLIQ, NR). MedReleaf brings one of the most capable indoor cultivation teams in the industry, several award-winning proprietary strains, a solid base of medical mail order revenue, GMP certification and a large Ontario production footprint (where Aurora did not to date own any facilities outright).”

Atkinson has an average return of 128.7% when recommending MedReleaf Corp.

According to TipRanks.com, Atkinson is ranked #78 out of 4800 analysts.

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MedReleaf Corp has an analyst consensus of Strong Buy, with a price target consensus of C$32.50.

Based on MedReleaf Corp’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of C$5 million. In comparison, last year the company had a net profit of C$2.19 million.

MedReleaf Corp. engages in the production and sale of medical cannabis. Its cannabis products include dried, oil, and oil capsules. The company was founded by Neil J. Closner and Eitan Popper on February 28, 2013 and is headquartered in Markham, Canada.

The company’s shares closed on Tuesday at C$25.13.