VFF - Switching From Tomatoes To Cost-Efficient Cannabis Boosts Company's Stock By 35% | Benzinga
Zuanic & Associates has initiated coverage on Village Farms International (NASDAQ: VFF), assigning an "Overweight" rating. What are the key factors that contribute to the bullish stance on Village Farms International?
Market Positioning and Financial Stability
Senior analyst Pablo Zuanic notes Village Farms as a standout in the Canadian Licensed Producers (LPs) market, valued notably at 0.6 times sales.
The company's strong market share and brand presence are bolstered by its profitable operations and positive cash flow.
Strategic Growth and International Expansion
Zuanic highlights Village Farms' methodical and conservative growth strategy, contrasting it with the rapid and often unsustainable expansion of other players in the field.
The company's approach has been characterized by gradual steps, such as transitioning from B2B (white label) to branded market entry with a limited but focused product range.
Internationally, Village Farms is making significant strides by expanding into markets such as Australia, Israel, and Germany, while also owning a majority stake in Leli Holland, a key licensee in the Dutch legal recreational market, indicating potential for substantial growth in ...