The potential rescheduling of cannabis in the U.S. and the growing demand in Germany positions InterCure (NASDAQ: INCR), the leading seller of pharmaceutical cannabis outside North America, to capitalize on these opportunities, according to a recent initiation note by Pablo Zuanic of Zuanic & Associates.
Zuanic highlighted said that "InterCure's experience in Israel, a market five years ahead of Germany in development, gives it a competitive edge." He also noted that "down the road, INCR could enter the U.S. market if FDA-approved and controlled pharmaceutical cannabis is federally legalized. In a global industry context, InterCure has strategic value."
Market Position And Growth Potential
InterCure has a significant presence in Israel, accounting for 98% of its sales, and is poised for substantial growth due to recent regulatory changes, expected to result in a 2-3x increase in demand.
The company's expertise in pharmaceutical cannabis positions it as a strategic player in the global market. "InterCure has strategic value with its ability to produce quality flowers at scale under strict GMP standards," Zuanic wrote.
Financial Performance
Despite disruptions caused by the Oct 7 attacks, which led to a 50% drop in 4Q23 sales, InterCure is expected to rebound with double-digit sequential growth throughout 2024.
The company's southern facility, which was damaged during the attacks, is anticipated to resume production by late 3Q24 or early 4Q24. Zuanic projects the company ...Full story available on Benzinga.com
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