BioTuesdays

AGP starts Columbia Care at buy; PT $8 (Canadian)

Alliance Global Partners initiated coverage of Columbia Care (CSE:CCHW) with a “buy” rating and price target of $8 (Canadian). The stock was quoted at $4.41 in afternoon trading on Sept. 25.

Columbia Care engages in cultivation, manufacturing and provision of medical cannabis products and services. The company operates in more than 16 jurisdictions under the Columbia Care brand, as well as The Green Solution in Colorado.

 “We believe the company is well-positioned to build on investments made in 2019/2020 as Columbia transitions to profitability and benefits from cultivation coming online,” writes analyst Aaron Grey.

In addition, he said the company’s exposure in New Jersey and other northeast states sets the company up well for a potential wave of adult-use legalization in the region during the next few years.

“Balancing its strategy of depth and breadth, we look for management to execute on its ranked priorities of investing in existing markets; tuck-in M&A that is cash flow positive- to-neutral; and look at new states that could be legalizing cannabis,” Mr. Grey said.

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