Acreage Holdings, Inc. (OTCQX: ACRDF) reported its financial results on Monday for the third quarter that ended September 30, 2022 (“Q3 2022”).

According to Cantor Fitzgerald’s Pablo Zuanic: “We remain Neutral but increase our 12-month price target on Acreage to $1.44 from $1.28 following the recently announced Canopy Growth Corp. (NYSE: CGC) proposal.”

In Zuanic’s opinion, over the last year, the company has made "significant" strides in refocusing the business, improving profitability, and driving Year-over-year (YOY) growth; "we think it is well-positioned to benefit from the start of rec sales in New York/Connecticut in 2H23 and grow along with the New Jersey recreational market."

In 3Q22 macro issues and competitive challenges resulted in flat sales seq and lower EBITDA, and we expect little improvement in 4Q22.

Price Target

Cantor's price target for the company takes the current implied conversion price of $1.44. So, in its view, "Canopy Growth is getting a good deal; if we take the blended price …

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