Our Organigram Holdings stock forecast (OGI.V) was very bullish. Our price target of $40 will be underway provided this stock continues to trade above its congestion area. Moreover, we want to see strength in Canopy Growth (WEED.TO), the sector leader, which is consolidating for 3 months now, even though we published a bullish Canopy Growth forecast as well as Canadian cannabis stocks outlook.
This is a short update on Organigram Holdings because fundamentals did not change for this cannabis stock which is one of our top favorites in the space.
All we see is continued strength in fundamentals and financials as suggested by this very positive news stream. We look forward to the next quarterly earnings report which will be published on April 15th, 2019.
So back to our outlook: how did we derive a price target of $40 the Organigram Holdings stock price? This is what we said before:
Very simple, fundamentally this a sector that has just started growing. The growth potential is enormous, and per Tsaklanos his 1/99 Investing Principles it is a handful of cannabis stocks that will outperform their peers.
Moreover, it was $8.50 as the previous all-time high that had to be cleared.
Both conditions are in place, so what’s next for Organigram Holdings?
First of all, the quarterly earnings report must be solid. We expect this to be the case, as the company has proven to deliver solid growth and operational excellence. Also, they manage their finances pretty well compared to other stocks in the space, especially shareholder dilution and cash management looks good.
More importantly, the chart setup is pretty special. This a giant rising triangle shown below should have a bullish outcome provided the earnings report is solid and the cannabis space continues its bullish momentum. If not, secular support sits in the $5.50 to $8.50 area.
If Organigram Holdings manages to break above $10.00 we will see great bullish momentum, and lots of capital flowing to this stock. It will be the ultimate confirmation that our mega-bullish price target of $40.00 will be underway!