NuWays AG Recommends BUY for Cantourage Group SE

NuWays AG has released an updated recommendation for Cantourage Group SE, maintaining a "BUY" rating with a target price of EUR 10 over the next 12 months. The company recently released its consolidated FY24 accounts, revealing sales of €50 million and EBITDA of €3.5 million, which aligned with expectations.

The Cantourage Group SE showcased strong growth, particularly in its high-margin flower products. FY25 revenues reached €89 million, a 74% year-over-year increase, with a record EBITDA of approximately €6 million. Market concerns regarding regulatory changes in Germany did not impact demand as significantly as anticipated. Moreover, potential telemedicine restrictions seem less detrimental than initially feared, leading to a more favorable market outlook.

Governance improvements are underway, with ERP implementation and IFRS adoption enhancing financial reporting. The appointment of Monique Jaqqam as CFO further demonstrates commitment to engaging with capital markets. Furthermore, a recent acquisition benchmark was set with the purchase of the Sanity Group by Organigram for €250 million, illustrating the sector's M&A potential.