Thursday, May 8, 2025

Latest

Ayr Wellness: Canaccord Raises Price Target To $70

On March 10th, Ayr Wellness (CSE: AYR.a) reported their fourth quarter and year end financial results. They posted quarterly revenues of U$47.76 million, an adjusted EBITDA of U$19.35 million, along with a net loss of U$143.58 million. Full year numbers came in at U$155.1 million, U$56.19 million, and -U$176.3 million, respectively. These numbers generally came in line with the average analyst estimate. You can find what analysts were expecting out of this quarter and full fiscal year here.

Ayr Wellness currently has four analysts covering the company with a weighted 12-month price target of C$58. This is up from the average before the results, which was C$54.60. One analyst has a strong buy rating and the other three have buy ratings. The street high comes from Beacon Securities with a C$76 price target, and the lowest target comes from PI Financial with a C$60 price target.

In Canaccord’s note on the 11th, they were the only analyst to upgrade their 12-month price target, raise the target from C$60 to C$70. Matt Bottomley, Canaccord’s analyst headlines, “Q4/20: Nevada headwinds weigh on QoQ growth while Ayr provides encouraging FY2022 outlook.”

Onto their estimates, Ayr came slightly below their estimates. They forecasted U$50.26 million and U$21.65 million for revenue and adjusted EBITDA, respectively. Bottomley attributes this miss mainly from COVID headwinds, specifically in Nevada, where states sales were down quarter over quarter. But in its other key state Massachusetts, it reported a 22% quarter over quarter increase in wholesale sales with its products in 78 out of the 110 retail dispensaries.

Bottomley believes that the company has sufficient capital to carry out its expansion promises as well as close all pending M&A, with its U$245 million in cash on hand.

The company reaffirmed its guidance for M&A closing dates. During this quarter, the company closed both PA acquisitions and the Liberty Health Sciences deal after the period end. The company is still on track to close its AZ and OH transactions later this month, with the New Jersey acquisition expected to close this summer. Bottomley writes, “We believe Ayr is on track to increase its US exposure, from its historical legacy markets of MA and NV to seven high-growth states, in the relatively near term.”

Below you can see Canaccord’s new 2021 and 2022 guidance. There is a slight divergence between Canaccord’s 2020 numbers and management guidance.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Related News

Raymond James Upgrades Village Farms To Strong Buy After Pure Sunfarms Acquisition

Raymond James upgraded Village Farms (TSX: VFF) (NASDAQ: VFF) to a strong buy, up from...

Saturday, November 7, 2020, 01:51:00 PM

Meta Platforms: Canaccord Drops Price Target To $330

Last week Meta Platforms (NASDAQ: FB) reported its first quarter financial results. The company saw...

Sunday, May 8, 2022, 11:14:00 AM

Equinox: BMO Lowers Price Target After Second Blockade In Nine Months

On June 22nd, Equinox Gold Corp. (TSX: EQX) announced that there has been illegal blockades set...

Thursday, June 24, 2021, 04:14:00 PM

Cresco Labs: Haywood Marginally Revises Estimates Following Cultivate Acquisition

On September 3, Cresco Labs (CSE: CL) announced that they have closed their acquisition of...

Friday, September 10, 2021, 10:56:00 AM

Adobe: “Results Were Actually Better Than Feared By Investors”

On March 22nd, Adobe Inc (NASDAQ: ADBE) reported its fiscal first quarter 2022 results. The...

Saturday, March 26, 2022, 03:10:00 PM