AGP starts Greenlane at buy; PT $6

Alliance Global Partners initiated coverage of Greenlane Holdings (NASDAQ:GNLN) with a “buy” rating and $6 price target. The stock closed at $2.73 on Sept. 3.

Analyst Aaron Grey writes that Greenlane is now positioned to capitalize on the burgeoning cannabis market following the merger with Kushco Holdings. 

“We see the pro forma company as now having a stronger suite of products to correlate with expected growth in cannabis, such as vape hardware and packaging and supplies, with top and bottom line synergies as providing an attractive P&L profile over time,” he added. 

Mr. Grey said that with Greenlane trading at a multiple of just 1.1 times estimated calendar sales in 2022, well below other ancillary players, “we see current stock levels as an attractive entry point.”