Organigram Holdings (OTCQB: OGRMF) is among the hot stocks in the cannabis industry; Organigram shares soared more than 149% in the last twelve months before losing some value in the previous month – OGRMF stock lost some value due to potential trade tariffs from the United States. OGRMF shares have the 52-week trading range of $1.49 to $4.56 – with the total market capitalization of $356 million.

Analysts have been applauding the company’s strategy of expanding its productivity and market share with sharp investment in growth opportunities.

Canaccord Genuity analysts Matt Bottomley has increased the target price for Organigram stock and hiked his expectations for its total market share in Canadian markets.

“As we expect the company to benefit from a first-mover advantage, we have modestly increased our assumed market share by 50 basis points to 6.0 percent of the Canadian market as a result of the company’s higher expected output,” says the analyst.

OrganiGram has enhanced analyst’s confidence after it reported that Health Canada had approved the remaining 13 rooms of its Phase 2 expansion following the approval of the first ten in its 23-room facility less than a month ago.

The company now expects its production yields to improve 50% from its previous estimates. “We see some harvest yields that are more than 400 grams per square foot a year and have witnessed the quality, density and size of flowers improve tremendously,” said Greg Engel, CEO,

After the approval of the second phase of 13 rooms, the company amended its production guidance – it now expects production in the range of 110,000 kg/annum from fully funded operations by early 2020.

>>Aurora Cannabis Is Set To Capitalize On Blooming Cannabis Demand

Organigram’s generated net sales of CAD 2.7 million in the first quarter, the highest sales since its inception. Its dried flower sales were standing around 195,000 grams in Q1-2018, while Cannabis oil sales grew to a new record level of 419,000 ml in Q1-2018. Overall, the company is planning to improve its production activities and reduce the cost structure to generate sustainable growth in the long-run.

Featured Image: twitter