Organigram: Premium Pivot Signals Further Margin Expansion (NASDAQ:OGI)

Organigram: Premium Pivot Signals Further Margin Expansion Summary Organigram reported solid Q4 earnings, highlighted by achieving a record gross margin and issuing a net revenue guidance implying sustained double-digit organic growth. Quebec’s recent vape launch could boost Organigram’s Canadian market share, while consumer shift to quality experiences could boost sales of higher-margin liquid diamond vapes. Organigram’s expanded capacity and adoption of seed-based cultivation reduce its cost per gram while offering opportunities to increase exports to higher-margin international markets. If Organigram’s EU-GMP certificate application is successful, it would be able to directly export cannabis products to EU pharmacies, further boosting international adjusted gross margins. I’m reiterating my buy rating for Organigram with a price target of $2.82, implying 40% upside from its current valuation. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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