Ascend Wellness initiated with a Neutral at Cantor Fitzgerald

Cantor Fitzgerald analyst Pablo Zuanic initiated coverage of Ascend Wellness with a Neutral rating and $1.75 price target. A combination of great locations and superior retail service/execution makes Ascend stores stand out within the peer group, the analyst tells investors in a research note. At the same time, the firm believes the Illinois business, which represents roughly 50% of sales, will face challenges in 2023, and says the stock screens "mixed" with below-average margins, lackluster EBITDA/OCF conversion, and debt slightly above-average.