Wall Street Thinks INCR Stock Has 165%+ Upside
During these trying economic times, few things can warm the cockles of your heart like finding an undervalued stock that is reporting a string of record financial results. And that’s what’s been happening at InterCure Ltd (NASDAQ:INCR), the leading profitable, fastest-growing cannabis company outside of North America.
The company kicked off the year with record first-quarter results, repeated that success in the second quarter, and recently reported record-breaking third-quarter results. And the same trajectory is expected for the fourth quarter.
Further financial growth will be fueled by solid demand for the company’s branded products, expansion of its medical cannabis dispensing operations, and its global expansion plan.
What does InterCure stock have to show for this success? Not much—at least not yet. It’s been an abysmal year for marijuana stocks in general, but that will eventually pass. As of this writing, INCR stock is down:
- 29% over the last six months
- 25% year-to-date
- 31.5% year-over-year
On the plus side, InterCure stock is up 17% since hitting a record low of $4.14 in September 2022. Wall Street anticipates more upside, with analysts providing a 12-month share-price forecast in the range of $11.00 to $13.00. This points to potential gains in the range of 126% to 167% from shares of InterCure Ltd.
Chart courtesy of StockCharts.com
InterCure Ltd Overview
InterCure is the largest marijuana company in Israel and, as mentioned earlier, the fastest-growing marijuana company outside of North America. The company offers medical-grade dried marijuana flower and oils. (Source: “Corporate Profile,” InterCure Ltd, last accessed December 7, 2022.)
In March, InterCure announced a multiyear international cultivation, marketing, and distribution agreement with Clever Leaves Holdings Inc (NASDAQ:CLVR). Under the agreement, Clever Leaves will cultivate InterCure’s marijuana strains for the launch of InterCure’s branded products in the EU, the U.K., and South America. (Source: “InterCure and Clever Leaves Announce International Strategic Partnership,” InterCure Ltd, March 22, 2022.)
Other recent business highlights include:
- The grand opening of a “Cookies” pharmacy in Be’er Sheva, the largest city in Israel’s southern region
- The opening of InterCure’s first flagship Cookies pharmacy in Vienna, Austria
- The expansion of a medical-cannabis-dedicated pharmacy chain to 25 locations
- The enlargement of InterCure’s southern facility’s post-harvest area, nursery, and grow houses
- Record number of new product launches, with more than 10 new stock-keeping units (SKUs) added in Q3
Q3 Revenue Up 63% & Sets Record
On November 15, InterCure reported its financial results for the third quarter ended September 30. (Source: “InterCure Announces Record Breaking Third Quarter Financial Results with 63% growth YOY and 6% QoQ growth,” InterCure Ltd, November 15, 2022.)
The company announced that its third-quarter revenue jumped 63% year-over-year and six percent sequentially to CA$39.0 million. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) went up 85% year-over-year to CA$9.0 million.
InterCure Ltd ended the third quarter with a strong balance sheet, including CA$93.0 million in cash.
Alexander Rabinovitch, the company’s CEO, commented, “I am proud of our team delivering our eleventh consecutive quarter of profitable growth with strong operating and financial performance.” (Source: Ibid.)
He continued, We expect 2022 to be another milestone year for InterCure, solidifying our leadership position in the pharmaceutical cannabis market.”
INCR stock has taken a beating even though the company has been reporting record financial results. InterCure Ltd has a solid balance sheet, continues to report profitable growth, and is expanding in all key markets. Best of all, management expects to see that same momentum carry into the fourth quarter.
All this suggests that InterCure stock is worth watching.