The Althea Group Holdings Ltd (ASX: AGH) share price is pushing higher on Monday morning.
At the time of writing, the cannabis company's shares are up 3% to 53 cents.
Why is the Althea share price pushing higher?
Investors have been buying Althea shares this morning after it released a presentation.
This presentation included details on its European expansion, its growth opportunities, and, unconventionally, a broker recommendation.
In respect to its European expansion, Althea estimates that it has a 1 billion pound opportunity in the UK market. This is a big positive given that it believes it currently has a 33% market share in the UK.
In addition, it estimates that the Germany market will be worth 7.7 billion euros by 2028. Positively, last month it made its first shipment into the potentially lucrative market.
Althea has also been selected to supply the French National Agency for Medicines and Health Products Safety with second-source medicinal cannabis products for its national pilot program. This program is aiming to assess the relevance and feasibility of legalising medicinal cannabis in France.
If all goes to plan, the company believes the France market could be worth 9.5 billion euros by 2028.
The rest of the world
On home soil, management estimates that it has a 25% share of the Australian market. It is forecasting the Oceania market to grow to be worth US$1.55 billion by 2024.
In Africa, the company is expecting to make its first shipment into the South African market later this year. This market is predicted to be worth US$667 million by 2023.
Finally, in North America the company's Peak Processing Solutions business is estimated to have a US$2.7 billion market opportunity.
Clearly, the company has a lucrative global market opportunity to grow into. However, given the size of the market and the relatively low barriers of entry, competition is likely to grow strongly in the future.
Nevertheless, that hasn't stopped analysts at PAC Partners from putting a spec buy and $1.48 price target on the company's shares.
According to the presentation, the broker is predicting revenues of $20.5 million in FY 2021 and then $45.1 million in FY 2022.
