Fly News Breaks for September 20, 2019
Sep 20, 2019 | 07:33 EDT
MKM Partners analyst Bill Kirk last night initiated coverage of Acreage Holdings (ACRGF) with a Buy rating and $17 price target. There is an "extreme disconnect" between the implied value of Acreage given Canopy Growth's (CGC) commitment to purchase the company if and when U.S. federal legislation legalizes cannabis, Kirk tells investors in a research note. A contractual 0.5818 exchange for Canopy shares on 142.6M Acreage shares implies a $17 per share value for Acreage Holdings, well above the stock's current value of around $8, says the analyst. Kirk understands the discount given the uncertainty around federal legislation, but he points out the Canopy offer currently represents ~100% upside.
News For ACRGF;CGC From the Last 2 Days