Strong Financial Performance and Promising Outlook Lead to Buy Rating for Decibel Cannabis

Neal Gilmer, an analyst from Haywood, reiterated the Buy rating on Decibel Cannabis Company (DBCCF – Research Report). The associated price target remains the same with C$0.25.

Neal Gilmer has given his Buy rating due to a combination of factors including Decibel Cannabis Company’s strong financial performance and promising future outlook. The company reported Q1/25 revenue that was nearly in line with expectations, with improved gross margins leading to higher than anticipated EBITDA. Additionally, Decibel has made strides in strengthening its balance sheet by reducing accounts payable significantly.
Looking forward, Gilmer anticipates a substantial increase in revenue in Q2, driven by both international and domestic sales improvements. His revised estimates, although slightly more conservative than the company’s guidance, still project robust growth with substantial revenue and EBITDA figures for 2025. The Buy recommendation is further supported by a target price based on a reasonable revenue multiple, reflecting confidence in Decibel’s strategic direction and financial health.