Eight analysts upgraded their target prices on two Canadian stocks in the past week, giving both more than 65% upside potential. Analysts pushed up their expectations for VerticalScope , a developer of social media platforms, and Cresco Lab , a medical cannabis maker, after they reported their fourth-quarter results. They were the only two companies on CNBC Pro’s global stock screen that have received price target upgrades from five or more analysts in the past seven days, and also have potential upside of over 50%. Cresco Labs Cresco Labs, which operates across nine U.S. states, reported on Mar. 13 a 12% increase in adjusted quarterly profit compared to last year, despite a 2% fall in adjusted sales. While the stock is down by more than 85% from its all-time high in 2021, shares have risen 20% since its earnings. Wedbush Securities analysts Gerald Pascarelli and Antoine Legault hiked their price target for the stock’s U.S.-listed shares to $2.50, giving it an upside of 18%. CRLBF 1Y line “With the company exercising prudent costs controls and better profitability exiting 2023, and with a number of potential regulatory catalysts on the horizon, we view the setup for CL as incrementally more favorable,” the analysts said in a note to clients on Mar. 15. Investment banks Beacon Securities and Alliance Global Partners are significantly more bullish on the stock, giving it upside of 110% and 75%, respectively. Nick Anderson of MKM Roth is the sole equity analyst with a hold or neutral rating on the stock, and a price target that pointed to a 6% downside risk. “Pricing pressure and limited new state growth remain, but recent margin gains while maintaining its leading branded offering should deliver improved 2024 cash flow generation for future growth capital opportunities,” Anderson told clients in a note on Mar. 13. “Maintain Neutral, but warming to the opportunity.” VerticalScope The company behind online communities such as Overclock, Mothering, and BenzWorld beat expectations on both the top and bottom lines for its fourth quarter on Mar. 13. VerticleScope reported revenue of $17.9 million, compared to $16.6 million expected by analysts. The company said adjusted profits were $8.3 million, compared to a $7.3 million forecast. A downturn in advertising revenue has hurt the company, with revenue down by nearly a quarter over the past three quarters. However, analysts believe the worst is behind it, as all eight covering the stock raised their price targets after the company’s earnings. Investment banks CIBC Capital Markets, National Bank Financial and Canaccord Genuity also upgraded the stock to a buy rating. FORA-CA 1Y line “The positive trends through H2/23 and Q4/23 in particular, coupled with fairly clear indications from management of further strength in digital advertising going into Q1/24, suggests a meaningful uptick in the revenue outlook,” said Canaccord analyst Aravinda Galappatthige in a note to clients on Mar. 14. “In Q1/24, we expect the company to return to revenue growth for the first time since Q3/22 (on an organic basis from Q2/22).”
