TLRY - EXCLUSIVE: ATB Capital Markets Signals 2024 Hidden Gems In Canadian Cannabis | Benzinga

Deep-Value Opportunities in Overlooked Small-Caps

"We see certain Canadian cannabis small-cap stocks as deep-value opportunities. This is because the sector has been neglected by the market, and too much focus has been put on large names like Canopy Growth Corp (NASDAQ: CGC) or Tilray Brands Inc (NASDAQ: TLRY),” said Frederico Gomes, director of Institutional Research at ATB Capital Markets.

In an exclusive interview with Benzinga, Gomes provided key insights into the recently released "Focus On Deep Value Small-Caps: Canadian Cannabis 2024 Outlook" report, challenging prevailing negative sentiments surrounding the sector in Canada.

Gomes specifically highlighted micro-caps and small-caps, such as High Tide Inc (NASDAQ: HITI) and Nova Cannabis Inc (OTCQB: NVACF) as leaders in the industry. These companies are not only generating positive free cash flow but are also trading at remarkably low multiples, presenting an enticing investment proposition.

See Also: How To Invest In Cannabis Stocks?

Resilience Amid Challenges

Despite facing challenges related to excessive regulations and taxes, Gomes noted the sector's attractive double-digit ...