Rising cannabis MSO and new kid on the block Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) has quickly made a name for itself in a very competitive American marijuana industry alongside big names like Trulieve, Curaleaf, GTI and Cresco Labs.
Following the company’s IPO this summer, RWB has executed flawlessly closing a legendary string of deals including the blockbuster High Times agreement and the “gamer changer” Platinum Vape acquisition. Strong M&A and deal-making by RWB’s top brass, including industry veteran Brad Rogers, has put the company in a fantastic position to generate eye-popping revenue and EBITDA next year.
According to PI Financial analyst Jason Zandberg, over the next three years, Red White & Bloom is projected to generate the following revenue and EBITDA figures:
- Fiscal 2020: Revenue of $40.3 million + EBITDA of $4.9 million
- Fiscal 2021: Revenue of $293.4 million + EBITDA of $70 million
- Fiscal 2022: Revenue of $381.4 million + EBITDA of $125.4 million
Zandberg, who is bullish on the Michigan cannabis market, initiated coverage on Red White & Bloom earlier this month, issuing RWB a “Buy” rating while placing a $2.50 price target on the stock. The analyst compared RWB’s “narrow-angle” business model, which aims to become “Super-State Operators” in select markets, to that of leading MSO Trulieve (CSE: TRUL) (OTCQX: TCNNF).
Trulieve has amassed a dominant position in Florida, while RWB, via its PharmaCo holding, is the leading player in Michigan’s budding marijuana market. Recently, RWB exercised a call option to acquire 100% of PharmaCo, with the deal set to close any day.
Cannabis investors should be aware, PI Financial’s price target of $2.50, implies a potential upside of over 296% above today’s closing price of $0.63. RWB finished today’s trading session up 5%.
Investors wishing to learn more about Red White & Bloom, please check out the new Stockhouse ‘Stock Talk’ Podcast below.
Audio Source: Stockhouse
Investor Research Links:
- CDN Listing | CSE: RWB
- U.S. Listing | OTCQX: RWBYF
- Website | IR Website | Investor Deck | RWB Chart | RWB Email Alerts
- Top Analyst Initiates Coverage on RWB, Issues Bullish Price Target 323% Above Market
- A Deep Dive into Rising U.S. Cannabis Operator Red White & Bloom
- Red White & Bloom’s Platinum Vape to Expand into Promising New Cannabis Market
- Red White & Bloom Ramps Up Expansion Strategy, Bolsters Team with Several New Additions
- Red White & Bloom Closes $25 Million Bought Deal, With Fully Exercised Over-Allotment Option
- RWB Closes Highly Accretive Platinum Vape Acquisition Ahead of Schedule
- Red White & Bloom Exercises Call Option to Acquire 100% of Michigan-Based PharmaCo
This U.S. Cannabis Stock Appears to Be Way Undervalued and May Actually Benefit From a Second Wave of the Pandemic
Red White & Bloom is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in RWB.
This report/release/profile is a commercial advertisement and is for general information purposes only. We are engaged in the business of marketing and advertising companies for monetary compensation unless otherwise stated below.