Paradigm starts Cansortium at buy; PT $2.40 to $3.40

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Paradigm launched coverage of Cansortium (CSE:TIUM) with a “buy” rating and a price target between $2.40 and $3.40. The stock closed at $1.59 on May 23.

Analyst Rahul Sarugaser writes that Cansortium, a vertically-integrated medical cannabis company, is “setting standards in the toughest jurisdictions,” and that its “rigorous approach to compliance and quality assurance has proven a key competitive advantage in executing its first-mover strategy.”

Consortium is establishing operations across the U.S. in some of the most restrictive jurisdictions for cannabis, leveraging its experience in pharmaceutical compliance and operations.

“Consortium has made a practice of entering the medical cannabis markets of states and nations on the ground floor,” Sarugaser said, adding that the company’s distribution of exclusively medical cannabis de-risks the company, compared with its peers in the adult-use cannabis space.

In addition to its U.S. multi-state operator focus, Consortium is pursuing vast, international growth in the near-term, initially in Brazil, Colombia and Canada.

Sarugaser said that “Consortium has some of the strongest fundamentals and highest potentials for growth of any cannabis company we have analyzed, worldwide,” highlighting its impressive revenue and world-class regulatory expertise in a rapidly expanding medical cannabis market.

Stephen Kilmer