Cantourage Group SE: Promising Growth Amid Cannabis Legalization

Cantourage Group SE, under the analysis of NuWays AG, has reaffirmed a "Buy" recommendation with a target price of €10. The company's recent Q3 figures highlight a significant sales growth of 124% year-on-year, primarily fueled by the partial legalization of medical cannabis in Germany. This transition has simplified access to prescriptions, paralleling the ease of obtaining common medications.

The financial year 2024 guidance suggests achieving sales up to €40 million, with a trajectory towards reaching EBITDA profitability despite substantial growth investments. The firm is well-positioned in a promising market, holding a long-term opportunity valued at €1.2-1.4 billion. With investments in processing capabilities and a telemedicine platform, Cantourage is laying the groundwork for sustained expansion.

The outlook for fiscal year 2025 includes a sales estimate of €54 million, indicative of a 26% year-on-year growth, underlining the robust operational framework Cantourage has established.