InterCure Ltd: Pot Stock With 125% Upside Reports Another Record Quarter

Analysts Say InterCure Stock Could Double Again

With the S&P 500 and Nasdaq both in bear-market territory, interest rates rising, inflation soaring, and fears of a recession, it’s not difficult to find stocks that have been unfairly kicked off a cliff.

After the stock market finally bottoms, many of the discounted stocks will rebound the quickest. That’s why it’s a great time for investors to find beaten-down stocks of pot companies that have been doing everything right. One of the best cannabis companies right now is InterCure Ltd (NASDAQ:INCR), which does business as Canndoc.

The company’s financials show why INCR stock is an excellent marijuana stock poised for tremendous growth.

Despite terrible market conditions, InterCure Ltd reported record 2021 financial results. That momentum has continued in 2022. InterCure Ltd’s first-quarter results included record revenue, high net income growth, and the company’s seventh consecutive quarter of positive cash flow.

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InterCure Ltd’s management predicts that the good times will continue throughout 2022.

This should be great news for InterCure stock investors, but the stock market is being routed and INCR stock is being dragged down with it. As of this writing, shares of InterCure Ltd are down by:

  • 24% over the last month
  • 14% over the last three months
  • 20% over the last six months
  • 12% year-to-date

There’s no way to sugarcoat those numbers. On the other hand, Wall Street analysts continue to be bullish on InterCure stock. They’ve provided a 12-month share-price target range of $7.00 to $13.00 per share of InterCure Ltd, suggesting potential upside in the range of 22% to 126%.

Chart courtesy of StockCharts.com

About INCR Stock

The Israel-based InterCure Ltd describes itself as the “leading, profitable, and fastest growing cannabis company outside of North America.” Canndoc, which is a wholly owned subsidiary of InterCure, is Israel’s biggest licensed cannabis producer. The company provides medical marijuana products. (Source: “Corporate Profile,” InterCure Ltd, last accessed June 16, 2022.)

Since the start of 2022, InterCure Ltd has announced a number of partnerships and an acquisition.

In February, the company announced plans to acquire Cann Pharmaceutical Ltd., an Israel-based multinational medical cannabis company doing business as Better. The transaction is expected to close in the third quarter. (Source: “InterCure Signs Definitive Agreement to Acquire Multi-National Medical Cannabis Producer ‘Better’,” InterCure Ltd, February 16, 2022.)

In March, InterCure announced a strategic, international, multiyear cultivation, marketing, and distribution agreement with Clever Leaves Holdings Inc (NASDAQ:CLVR). (Source: “InterCure and Clever Leaves Announce International Strategic Partnership,” InterCure Ltd, March 22, 2022.)

Under the agreement, Clever Leaves will cultivate InterCure’s marijuana strains and launch InterCure’s branded products in the EU, U.K., and South America.

Also in March, InterCure also announced a new partnership with Altman Health LP, a nutritional supplement company with products available at more than 1,700 points of sale, including all major pharmacies across Israel. (Source: “InterCure Announces Partnership With Altman Health,” InterCure Ltd, March 1, 2022.)

InterCure’s partnership with Altman Health will register, manufacture, market, and distribute cannabidiol (CBD) products—including “Charlotte’s Web”-branded products—in Israel.

InterCure Ltd Kicked Off 2022 With Record-Breaking Results

In April, InterCure reported that its fourth-quarter 2021 revenue jumped by 194% year-over-year to CA$32.6 million. It also reported record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of CA$9.0 million. (Source: “InterCure Reports Record Breaking Q4 and 2021 Results – Exceeded Preliminary Results,” InterCure Ltd, April 6, 2022.)

During the fourth quarter of 2021, the company captured 30% of Israel’s medical marijuana market. Also during the fourth quarter, InterCure announced that it had expanded its operations into Europe.

In May, InterCure Ltd reported record-breaking financial results for the first quarter ended March 31.

The company reported all-time record quarterly revenue of CA$34.0 million, almost three times higher than the CA$13.0 million reported for the first quarter of 2021 and up by nine percent sequentially. (Source: “InterCure Begins 2022 With Record Breaking First Quarter Financial Results,” InterCure Ltd, May 16, 2022.)

InterCure’s adjusted EBITDA in the first quarter of 2022 was CA$8.0 million. This represents an annual run rate of CA$32.0 million and a 112% year-over-year increase.

Its first-quarter net income was CA$6.0 million, compared to CA$2.0 million in the first quarter of 2021. That was the company’s ninth consecutive quarter of high profitable growth.

The first quarter of 2022 was the company’s seventh consecutive quarter of positive cash flow from operations.

InterCure Ltd reported record quarterly profits before taxes of almost CA$8.0 million, representing year-over-year growth of 245%. The company ended the first quarter of 2022 with CA$91.0 million in cash.

During the first quarter, InterCure added three pharmacies to its medical cannabis dedicated pharmacy chain, bringing its number of retail locations in Israel to 23.

Analyst Take

As mentioned earlier, InterCure Ltd is the leading marijuana company outside of North America. The company’s robust revenue growth, ongoing profitability, and cash flow from operations make InterCure stock one of the best cannabis stocks on the planet.

InterCure’s solid balance sheet should allow it to take advantage of opportunities in the global marijuana market, setting up 2022 to be “another milestone year” for the company (and for INCR stock investors).