PlantX Life Inc shares soared on Wednesday after a report by New York-based hedge fund Capital Y Management described the company as “a market leader with a disruptive business in an emerging industry with long-term tailwinds.”
In a press release, PlantX highlighted the report in which Capital Y Management analysts set a 12-month price target of C$0.67 per share for the company, representing an enterprise value for PlantX of approximately C$68 million. At the close on Wednesday, PlantX's Canadian-listed shares were up about 57%, trading at about C$0.06.
Capital Y analysts noted that PlantX’s recently announced engagements with Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) would likely contribute an additional 12% of revenue to the company and decrease the need for market spend, expanding operating profit on both a dollar and margin basis.
READ: PlantX Life says it has obtained debt financing of up to $10M from an arm's length creditor, no longer pursuing non-brokered private placement
“The company's positioning should allow it to enjoy overall industry tailwinds while retaining exposure to the most popular brands through its omnichannel distribution strategy,” analysts wrote.
“The leadership of PlantX CEO Lorne Rapkin and management continue to strengthen the financial pedigree of a disruptive business that is quickly embedding itself as a market leader in an emerging industry with long-term tailwinds," they added.
Analysts noted that in the long run, they believed PlantX’s stock could be worth "between C$1.52 and C$2.91 by the end of the 2025 financial year.”
PlantX CEO Lorne Rapkin said the company was encouraged by this independent report which recognized the company was well-positioned.
“While we are not commenting on the specific projections, we are focused on achieving success similar to Capital Y's outlook,” Rapkin said. "The PlantX team is hard at work to make plant-based diets available to everyone, expanding our presence in this rapidly growing market.”
Capital Y's full report can be found here.
PlantX’s platform is the one-stop shop for everything plant-based as the company spearheads the movement towards a plant-based lifestyle.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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