Fire & Flower Holdings: Analyst Reduces Price Target To $1.65 And Remains Neutral
Fire & Flower Holdings: Analyst Reduces Price Target To $1.65 And Remains Neutral
Fire & Flower Holdings Corp. (OTCQX:FFLWF) (NYSE:FAF) (TSX:FAF) released its financial and operational results for fiscal 2022 third quarter ended October 29, 2022, revealing revenue of CA$43.8 million ($32.2 million) for Q3 2022, representing an increase of 8% from CA$40.7 million in the previous quarter and a decrease of 3% from CA$45.4 million in the prior year comparative period.
火花控股公司。(OTCQX：FFLWF)(紐約證券交易所：FAF)(多倫多證券交易所：FAF)放行截至2022年10月29日的2022財年第三季度財務和運營業績顯示，2022年第三季度收入為4380萬加元(3220萬美元)，比上一季度的4070萬加元增長8%，比上一年同期的4540萬加元下降3%。
The Analyst
《分析師》
According to Cantor Fitzgerald's Pablo Zuanic: "We stay Neutral and lower our 12-month price target to C$1.65 from C$1.95 due to reduced estimates. Moreover, "We attach our updated model following the release of the Oct qtr print and adjust our model for the shift in the fiscal year to Dec from Jan."
根據Cantor Fitzgerald的巴勃羅·祖阿尼克的說法：“我們保持中性，由於預期下調，我們將12個月目標價從1.95加元下調至1.65加元。此外，我們附上了10月季度報告發布後的更新模型，並針對從1月到12月的財年變化調整了我們的模型。”
The Thesis
這篇論文是
In Zuanic's view, as company retail sales increased 9% sequentially in the October quarter "in a market we estimate grew 5%; retail segment gross margins increased 100bp seq to 24.3%, and EBITDA trends improved (-$2.8Mn vs. -6Mn)." The company's performance is encouraged considering a tough retail climate, according to the analyst.
根據Zuanic的觀點，隨著公司零售額在10月份的季度環比增長9%，“在我們估計增長5%的市場中，零售部門的毛利率增長了100個基點，達到24.3%，EBITDA趨勢有所改善(-280萬美元對-600萬美元)。”據這位分析師說，考慮到嚴峻的零售環境，該公司的業績受到了鼓舞。
Moreover, management describes the pricing strategy as "high-low" with more surgical discounting for members in the loyalty program, rather than "blanket discounting."
此外，管理層將定價策略描述為“高-低”，為忠誠度計劃中的會員提供更多外科手術折扣，而不是“全面折扣”。
In addition, the guidance calls for positive EBITDA "by 1H23 and positive FCF by 2H23; it expects to capture market growth both via M&A and organically," said the analyst.
此外，這位分析師表示，該指引呼籲在上半年前實現正EBITDA，在2H23年前實現正FCF；預計將通過並購和有機方式實現市場增長。
Keeping "A Constructive Stance"
堅持“建設性立場”
Zuanic noted that the company's new stores in Canada may include standard shops as well as those collocated at Circle-K outlets, "estimating the net economics for FAF representing $75-100K per store."
祖尼克指出，該公司在加拿大的新門店可能包括標準門店和Circle-K奧特萊斯的門店，“估計Faf的淨經濟價值為每家門店75-10萬美元。”
Although "we rate the stock Neutral, we keep a constructive stance because of the ACT angle and because of what we think is a more tailored approach to pricing," he added.
他補充稱，儘管“我們對股票的評級為中性，但我們保持建設性的立場是因為ACT的角度，以及我們認為更有針對性的定價方法。”
Valuation and price target (all in C$): The company shares "are down 44% in the last 3 months vs. a 19% drop in the YOLO ETF," Zuanic said.
估值和目標價(全部以加元為單位)：祖阿尼克表示，該公司的股價在過去3個月裡下跌了44%，而YOLO ETF的跌幅為19%。
"We continue to take 0.7x on our CY24 sales estimates, which yields a price target of $1.65 by Dec'23. Given sector volatility, we look for a>50% upside to rate stocks Overweight," the analyst concluded.
這位分析師的結論是，我們對2014財年銷售預期的估值繼續為0.7倍，到12月23日的目標股價為1.65美元。考慮到行業的波動性，我們預計漲幅>50%，以對股票進行增持評級。
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Photo: Courtesy Of Pietro Jeng On Unsplash
圖片：Unspash上由Pietro Jeng提供
譯文內容由第三人軟體翻譯。