As usual, year after year, Canaccord Genuity releases a list of its top picks for the upcoming period. After making it public on December 14, Ayr Wellness was among the chosen ones. 2022 promises to be a very positive year for the cannabis industry, and Canaccord Genuity thinks Ayr Wellness could do wonders if it keeps up the pace it has shown over the past few years.
By Canaccord’s reckoning, inflation will moderate as supply chain disruptions ease in the first half of 2022 before it steps back on the accelerators during the second half of the year. In addition to this, experts forecast interest rates and earnings “leading to a more choppy environment for stocks in 2022.”
For Canaccord’s top cannabis top pick, Ayr Wellness, they have a 12-month price target of approximately $48 million. They claim that 2021 has been an extremely solid year for the company, especially when it comes to the execution and integration of the many acquisitions it made. Canaccord is confident that the sector and Ayr Wellness specifically has a number of positive regulatory tailwinds.
Due to a share price of approximately 5x EV/EBITDA estimated for 2022, Canaccord assures that the company has a special attractiveness compared to its peer group. They write, “With strong execution since coming to market and a portfolio of assets set to see sizable growth in 2022, we believe [Ayr Wellness] is due for a valuation re-rating and would continue to be buyers at current levels.”
The cannabis sector was not reduced to Ayr Wellness only, as Canaccord also selected Trulieve on its list, saying the company is positioned for healthy growth in the future, especially after completing its acquisition of Harvest. It is no secret that both companies have performed very well and are considered leaders in their respective sectors. Canaccord suggests following their movements closely, as they could bring some surprises for a year that seems to be quite promising in the cannabis market.