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Original-Research: Cantourage Group SE - from NuWays AG
10.10.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
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: Update
Recommendation: Buy
from: 10.10.2024
Target price: EUR 10.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
9M prelims: Growth further accelerating, FY guidance specified
Topic: Cantourage released preliminary Q3 figures, which were marked by
>100% yoy sales growth and further sequential improvements thanks to the
partial legalization that took place in April. With this, the company is
well on track to reach EBITDA profitability this year. In detail:
Q3 sales jumped by 124% yoy to EUR 13.2m (9M sales +75% yoy to EUR 30.1m). The
significant growth was primarily fuelled by the partial legalization of
medical cannabis in Germany, which took effect at the end of April. This
change has made obtaining a prescription for medical cannabis as
straightforward as getting one for ibuprofen 600. On top, Cantourage is also
experiencing a sharp increase in demand at its treatment facility in UK.
Further, Cantourage is well on track to turn profitable despite significant
growth investments. In Q3, EBITDA is seen to come in at around EUR 1m
(mid-point of guidance). For the FY, management expects to reach EBITDA
break-even (eNuW: EUR 1.8m).
FY24 guidance specified towards the upper end. The company's initial FY24
sales guidance stood at EUR 37-43m (eNuW: EUR 43m). With EUR 30m sales after the
first nine months and the past two months alone having contributed some EUR
10m, management specified the guidance towards the upper end, now targeting
at least EUR 40m sales. Taking into account sequentially increasing sales
volumes and the strong operational performance during recent months, we
regard our estimate as well in reach. With the current runrate, our sales
estimate of EUR 54m for FY25e (26% yoy growth) already look achievable.
Mid-term to be marked by further strong growth. Assuming a somewhat similar
development of the German medical cannabis market as in US states, the
market offers a EUR 1.2-1.4bn opportunity. Over the past two years, Cantourage
has laid the foundation to achieve EUR100 million in sales. With a global
network of over 60 growers, Cantourage offers a diverse range of cannabis
flowers, minimizing cluster risks. Through its recent partnership with
Portocanna, the company can now process approximately 14 tons of flowers
annually. Additionally, Cantourage's own telemedicine platform, telecan°,
connects the company directly with patients, offering easy access to
cannabis therapy consultations and prescriptions.
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/31025.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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2005619 10.10.2024 CET/CEST
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