Canaccord Lowers Targets On Numerous Top Level Cannabis Equities

On February 4th, Canaccord Genuity came out with their cannabis fourth quarter 2021 preview. On that note, they lowered almost every single 12-month price target in their cannabis coverage.

  • Ayr Wellness (CSE: AYR.a) price target was lowered to C$57 from C$62
  • Columbia Care’s (CSE: CCHW) was lowered to C$11 from C$13
  • Cresco Labs (CSE: CL) lowered to C$15 from C$16
  • Curaleaf (CSE: CURA) was dropped from C$22 down to C$18
  • Green Thumb’s (CSE: GTII) lowered to C$46 from C$53
  • Trulieve’s (CSE: TRUL) lowered from C$97 to C$70.

Canaccord says that through their channel checks, they expect a more subdued end to the year with fourth-quarter revenues coming in flatter than at any point in 2021. They believe that this is primarily a function of record-high inflation, making consumers spend more on their other living expenses such as groceries and gas.

Additionally, after speaking to many U.S operators, many have noted that there is a wholesale pricing issue that is expected to continue into 2022 as more capacity continues to come online.

Even with this issue potentially hitting the companies margins, Canaccord expects 2022 to still be a banner year for the sector. They believe that the sector could hit the coveted US$30 billion run rate this year. They add that having exposure to the US cannabis sector currently is a “compelling valuation proposition.”

Lastly, Canaccord believes that the >60% drawdown in the USMJ names seen in the last year comes from “structural challenges in the equity markets given that cannabis remains an illicit Schedule 1 drug at the federal level.” Rather than any sort of concerns around the operational side of the businesses.

Below you can see Canaccord’s fourth-quarter earnings previews.


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

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

Verses Hits Commercialization Stage With Genius AI Platform

Related News

BMO Drops Kinross Gold’s Price Target On Messy Q1 Results

On Monday Kinross Gold (TSX: K) reported its first quarter financial results. The company saw...

Thursday, May 12, 2022, 12:24:00 PM

Curaleaf Amends Terms of Grassroots Acquisition

Nearly a year after the initial announcement, Curaleaf Holdings (CSE: CURA) this morning announced that...

Monday, June 22, 2020, 12:13:11 PM

Tyson Foods Sees BMO Lower Price Target On Underlying Fundamental Market Issues

This week BMO Capital Markets’ elected to cut both their 12-month price target and as...

Saturday, March 19, 2022, 03:11:00 PM

Endeavour Silver: BMO Lowers Price Target Following Guidance

Thursday morning Endeavour Silver (TSX: EDR) released their 2021 production guidance for 2021, guiding towards...

Sunday, January 31, 2021, 02:41:00 PM

Canaccord Raises Trulieve Price Target To $75 From $60

The last two weeks have been quite an enjoyable time for U.S cannabis sector investors....

Wednesday, January 13, 2021, 02:53:00 PM