On Thursday, Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) reported its financial results for the third quarter that ended September 30, 2022, with revenue of $119.6 million, up by 24.4% from $96.2 million in the same period of 2021.

Jonathan Sandelman, founder and CEO of Ayr, said the company “executed on its growth and profitability objectives during the third quarter, with our financial results largely in line with expectations.”

The Analyst

However, due to reduced estimates, Cantor Fitzgerald's Pablo Zuanic affirmed they stay Neutral, although reducing their 12-month price target to $4.25 from $4.65.

The Thesis

AYR reported sales of $119.5mn showing a 9% seq growth, and adj EBITDA margin improvement of 30bps to 18.1%. Moreover, for 4Q22, AYR “expects a sales and margin ramp and is guiding for +10% seq growth in revenue and EBITDA for 4Q22 and a further ramp starting in 1Q23,” Zuanic said.

"Yes, the stock trades at a peer discount," the analyst added, who thinks this is justified on above-average debt leverage, stock-based compensation, …

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