Canaccord Genuity analyst Robert Burleson has maintained their bullish stance on AAWH stock, giving a Buy rating yesterday.
Robert Burleson has given his Buy rating due to a combination of factors, including Ascend Wellness Holdings LLC’s (AAWH) reported earnings which surpassed the consensus expectations. The company’s revenue and EBITDA came in higher than projected, even amidst challenging conditions in established markets. Burleson also notes the potential for further growth, with the transition from medical to adult use in Ohio, where AAWH is expanding its footprint. This market shift is anticipated to significantly increase demand and further improve AAWH’s financial performance.
Further bolstering the Buy rating is the company’s strong cash flow generation, which has been on an uptrend for five consecutive quarters. This financial stability is likely to facilitate favorable terms in the refinancing of the company’s 2025 term loan, potentially leading to an expansion in valuation multiples. In addition, Burleson acknowledges several near-term catalysts that could revalue the sector, including federal regulatory progress and additional legislative developments. The combination of these factors, along with robust guidance that suggests further upside, supports the analyst’s positive outlook on AAWH’s stock.
In another report released yesterday, Haywood also reiterated a Buy rating on the stock with a C$2.50 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AAWH in relation to earlier this year.
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Ascend Wellness Holdings LLC (AAWH) Company Description:
Ascend Wellness Holdings Inc is a vertically integrated multi-state operator focused on adult-use or near-term adult-use cannabis states in limited license markets. Its core business is the cultivation, manufacturing, and distribution of cannabis consumer packaged goods, which it sells through company-owned retail stores and to third-party licensed cannabis retail stores.
