Echelon Capital initiates coverage of cannabis company MariMed as speculative buy
Echelon Capital Markets analyst Andrew Semple on Friday initiated coverage of Norwood, Mass.-based multi-state cannabis operator MariMed Inc. , which trades on the OTC. Semple rated the stock a speculative buy and set a 12-month target price of $1.50 a share for MariMed, which has grown cannabis revenue by more than seven times in the past two years. "We believe the management team are capable operators, as evidenced by the strong growth achieved in cannabis revenues, an impressive sales per store metric (annualized run rate of $18.8 million per store on average in Q321) and MariMed's track record of having generated positive free cash flow in each of the past seven quarters," Semple said in a research note. MariMed, which has a market cap of about $246.5 million, has seen its stock fall by 13.3% in 2022, compared to a drop of 22.9% by the AdvisorShares Pure U.S. Cannabis ETF .The stock traded unchanged at 74 cents on Friday.
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