On April 13, good natured Products (GDNP) announced preliminary results for the three months ended March 31, 2021.
Reported revenue for 1Q 2021 is expected to be approximately C$8 million. This represents an increase of about 160% from the revenue of C$3.05 million reported for the prior-year quarter. Meanwhile, gross margins are expected to be between 36% and 38%, compared to 36.3% for the first quarter of 2020.
good natured Products’ CEO Paul Antoniadis said, “Our strong revenue growth performance was driven by our strategic acquisitions completed in 2020, Shepherd Thermoforming and IPF, while gross margin benefitted from product and customer revenue mix for the quarter.”
“Despite disruptions in key markets from COVID-19 variants and extreme weather-related events in the southern US, our team and partners executed extremely well. We remain very optimistic on our organic growth prospects and acquisition opportunities,” added Antoniadis.
The earth-friendly product company expects to release full 1Q 2021 results in May 2021. (See good natured Products stock analysis on TipRanks)
Last month, Canaccord Genuity analyst Yuri Lynk initiated coverage of good natured Products. He gave the stock a Buy rating with a C$1.80 price target (50% upside potential).
In addition, about a month ago, Beacon analyst Ahmad Shaath also reiterated a Buy rating and a C$1.80 price target on the stock.
Shaath stated, “The company has a strong track record of delivering organic growth (averaging well above 50 per cent during 2018-2019) and will build on its newly-added verticals, especially in the medical packaging market, to continue to deliver on that front.”
The rest of the Street is bullish on good nature Products with a Strong Buy consensus rating, based on 3 Buys. The average analyst price target of C$1.70 implies upside potential of about 42% to current levels.
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