On a more positive note for you guys, we got through the...

On a more positive note for you guys, we got through the LiveWire Markets Bell Potter (John Hester) analysis for 2019 today, and the list of Bell Potter's most attractive stocks to invest in going forward - and guess who is there - yes, Elixinol. Target Price of $2.15

I personally think the fair value of the stock currently is around 70 cents, but what do I know, because I've been wrong many times.

But on a more personal note, I'd just like to see this stuff legalised in Australia, so that lives can be saved.

Anyway, here is the Bell Potter analysis.

Elixinol (EXL)

Elixinol is an established, leading brand in the nascent US market for hemp based nutraceutical products. The category is currently experiencing explosive revenue growth following recent regulatory changes to legalise the growing of hemp in the US and a growing acceptance of the clinical benefit from these products in controlling the symptoms of numerous chronic medical conditions.

The Australian operations of the group include Hemp Foods Australia (HFA) being a company focussed on the development of the market for Hemp Foods. This category is also expected to grow rapidly from a zero base. The catalyst for the sector was the inclusion of hemp foods on the Foods Standards Code.

The Group is led by Chief Executive Paul Benhaim who is the co-founder of both Elixinol US and Health Foods Australia. Following the IPO he retains 53% of the listed entity and is the largest shareholder by a considerable margin. Mr Benhaim is considered an expert in the field of industrial hemp and medicinal cannabis following more than two decades of experience in the sector both in Australia, the US and Europe.

The company has not provided earnings guidance for FY18, however, 1Q18 revenues grew by 24% over the prior sequential quarter. We expect further double digit growth for at least the remainder of the year and for some period thereafter.

We believe the imminent approval of the first medicinal cannabis product by the FDA in the US will provide further validation of the efficacy of CBD based medicines. Epidiolex is owned by GW Pharma and used for the treatment of Epilepsy in children. In our view this event is likely to have a flow on effect for other market participants including for the over the counter hemp CBD products markets by Elixinol US.

Our target price of $2.16 represents an upside of 56% to the current share price.

Speculative, Buy (Bell Potter)

Gw