Cannabis firms OrganiGram Holdings (TSX-V:OGI, NASDAQ:OGI) and Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB) are increasingly attractive on the back of encouraging quarterly financial results, analysts at Jefferies believe.
They have a ‘Buy’ rating on Organigram, which they said remains a top Canadian cannabis pick, writing in a note to clients that Organigram’s first quarter 2024 earnings showed progress on every metric.
They also pointed to Organigram’s attractive optionality from key strategic investor BAT, its robust balance sheet with a net cash position of C$41 million, and exposure to product innovation via convertible loans in cannabinoid biosynthesis firm Hyasynth Bio and cannabis genetic company Phylos Biosciences.
“1Q24 was very encouraging, with sales maintaining the move back to upward momentum, gross margins seeing a large sequential improvement, and there was a return to earnings before interest, taxes,…
