First Berlin Equity Research has published a research update on Cantourage Group SE (ISIN: DE000A3DSV01). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 11.00 price target.

Abstract
Cantourage has added another premium producer to its EU-GMP-certified supply network. Canadian craft cultivator LOT420 has secured certification with Cantourage acting as sponsor. This comes on the heels of Green Karat earlier this month giving Cantourage exclusive European access to another established premium brand. Both deals will allow more processing to be completed upstream before product enters the Cantourage distribution network. This should shorten the time between harvest and pharmacy delivery, supporting freshness, perceived quality and premium positioning. Strategically, the important read is repeatability. Two long-standing partners have now cleared the EU-GMP hurdle in quick succession with Cantourage’s support. This underpins our case that regulatory know-how can be used to deepen supplier relationships and lock in coveted product. We leave our forecasts and €11 PT unchanged and remain Buy-rated on Cantourage (108% upside).