Decibel Cannabis Company (DBCCF – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Neal Gilmer from Haywood reiterated a Buy rating on the stock and has a C$0.25 price target.
Neal Gilmer has given his Buy rating due to a combination of factors that highlight Decibel Cannabis Company’s financial health and growth potential. The company’s Q4/24 financial results aligned with expectations, demonstrating strong cash flow generation with $2.4 million in operating cash flow and $2.2 million in free cash flow. Additionally, Decibel’s adjusted gross margins exceeded estimates, and the company maintained a solid EBITDA margin.
Looking ahead, Gilmer notes that Decibel is poised for growth, particularly with an expected increase in exports starting in Q2/25. The company’s financial projections for 2025 and 2026 show promising revenue and EBITDA growth, aligning with management’s guidance. Furthermore, Decibel’s manageable debt levels, with most obligations not due until 2027 and beyond, provide a stable financial foundation. These factors contribute to Gilmer’s Buy recommendation and a target price of $0.25.