Columbia Care: Canaccord Reiterates Top Pick Following Green Leaf Medical Acquisition

Last Friday, Columbia Care Inc. (CSE: CCHW) closed their acquisition of Green Leaf Medical which was expected to close during the third quarter. The total payment was roughly US$240 million, which is a combination of $45 million cash and $195 million in Columbia Care shares. They reiterate that this deal will be immediately accretive to their gross margins, EBITDA, and cash flows.

Columbia Care has 11 analysts covering the company with a weighted 12-month price target of C$14.17, or a 109% upside. Out of the 11, four have strong buy ratings, six have buy ratings and a single analyst has a hold rating. The street high comes from PI Financial with a C$19 price target, and the lowest sits at Beacon Securities with a C$12 price target.

In Canaccord’s note, Matt Bottomley reiterates his speculative buy rating and C$15 price target and that Columbia Care is their top pick. He says that Green Leaf Medical “should help further strengthen and vertically integrate CCHW’s existing exposure in Maryland, Ohio, Pennsylvania, and Virginia.” He believes that the deal will be immediately accretive due to them picking up the company at a very reasonable 4.8x ’21 EV/EBITDA while Columbia Care shares trade at roughly 19x.

Columbia Care is getting roughly 400,000 sq ft of canopy plus four operational dispensaries and 6 licenses over four different states. Canaccord believes that their combined share in Virginia will position them to take the top spot in the state. They will have 142,000 sq ft of the combined canopy and the ability to open 10 new stores.

In the other states, Columbia Care will get an operational 42,000 sq ft production facility, a processing site, and two dispensaries plus the right to open three more in Maryland. In Ohio, the company gets one operational location. In Pennsylvania, they get a massive 274,000 operational production facility.


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.

Video Articles

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Gold’s Wild Bull Run: Are Markets About to Break? | Mike McGlone

First Majestic Silver: The Santa Elena Mine

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Lundin Gold Sees BMO Capital Markets Raise 2022 Production Estimates

Last week, Lundin Gold Inc. (TSX: LUG) announced its second-quarter production results. The company said...

Monday, July 11, 2022, 02:18:00 PM

Nutrien Sees Consensus Price Target Improvement Following Raised Guidance

On June 21st, Nutrien (TSX: NTR) raised their first half 2021 earnings per share guidance...

Wednesday, June 23, 2021, 03:36:00 PM

Shopify: Analysts Anticipate Q2 Earnings Of $0.07 Per Share

Shopify (NYSE: SHOP) will be reporting its second quarter financial results on July 28 before...

Tuesday, July 27, 2021, 04:31:00 PM

Walt Disney: Analysts Anticipate $15.87 Billion In Q2 Revenue

Walt Disney (NYSE: DIS) will be reporting their fiscal second-quarter financial results today after market...

Thursday, May 13, 2021, 02:20:00 PM

Canopy Growth: Canaccord Downgrades To Hold, Raises Price Target To $32

Yesterday, Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) reported their third fiscal quarter results. They...

Wednesday, February 10, 2021, 04:12:00 PM