Growth and Positive Outlook for Cantourage Group SE

Cantourage Group SE has shown impressive growth with its Q1 sales reaching €25.6 million, significantly surpassing the previous year’s figure of €6.1 million. This marks a new record high, exceeding expectations of €22 million. March alone contributed €10.7 million to the total, highlighting successful operational improvements.

The company's expansion efforts, including partnerships and increased processing capacities, may pave the way to achieving €100 million in sales this year. Despite ongoing investments, an EBITDA margin of around 10% is anticipated due to scale effects.

No guidance for FY25 has been issued yet, but sales growth expectations increased from 67% to 81%, projecting €93 million in sales. Political developments in Germany also suggest a stable regulatory environment for cannabis.

The company's share price is noted to have diverged from its improving fundamentals, with a current valuation of €56 million. Cantourage’s robust operational performance supports a BUY recommendation, with a target price of €13 based on a DCF analysis.