CCHWF - Columbia Care price target lowered at Cantor anticipating in-line quarterly results

Keeping the neutral rating unchanged, Cantor Fitzgerald has trimmed the price target of Columbia Care (OTCQX:CCHWF) as the analyst expects an “in-line quarter” when the U.S. cannabis player reports financials for Q2 2021 on August 12. The new per-share target of $5.30, down from $6.75 implies a premium of ~10.4% to the last close. The analyst Pablo Zuanic, who attributes the decision to sectoral derating, thinks that the company’s existing 7% discount to 2022 peer EBITDA average is justifiable given its narrower margins and the footprint with coverage in mature/ competitive states and lack of penetration in other states. The firm says it “will keep a close eye on the company’s progress” in the second half, arguing that Columbia Care (OTCQX:CCHWF) is well-positioned in “emerging” recreational markets with a footprint that could be attractive to Canadian licensed producers. In July, Jefferies started the coverage of seven U.S.-based cannabis players, including Columbia Care

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Columbia Care price target lowered at Cantor anticipating in-line quarterly results