Analysts from Echelon Capital Markets have released their Top Picks Portfolio for the second quarter of 2024 and a cannabis stock has caught their eye.
Echelon analyst Andrew Semple likes what he sees from Ascend Wellness Holdings (Ascend Wellness Holdings Stock Quote, Chart, News, Analysts, Financials CSE:AAWH.U).
Semple, who has a “Buy” rating and a price target of $3.50 on AAHW.U (implying a return of 171% at the time of publication) ran down what he likes about the stock right now, in an April 3 report to clients.
“We nominate Ascend Wellness Holdings (“Ascend” or “the Company”) to Echelon’s Q224 Top Picks Portfolio,” the analyst wrote. “Ascend is well positioned in the US cannabis industry with a strong management team, a solid balance sheet, and a portfolio of high-quality limited-license US cannabis markets. Moreover, upcoming regulatory reform at the federal and state level should be catalysts for the shares to re-rate higher. Despite these positive attributes, the stock trades at the lowest EV/EBITDA multiple in our tracking group of large MSOs, which we believe is undeserved. We view Ascend as primed to deliver outsized returns in the months ahead.”
Semple thinks AAWH.U will generate Adjusted EBITDA of (All figures USD)
