MedMen: Analysts’ Target Price and Ratings


Oct. 2 2019, Updated 2:18 p.m. ET

MedMen (MMNFF) (MMEN) is a Canada-based cannabis retailer. The company also operates in US states where marijuana is legal. MedMen reported its preliminary fourth-quarter results on August 13. Since then, the stock has fallen 36%. Let’s take a look at analysts’ target prices and ratings for the company.

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What are analysts saying about MedMen?

Notably, after MedMen reported its preliminary fourth-quarter earnings, Cormark Securities reduced the target price to 6.5 Canadian dollars from 7.5 Canadian dollars.

Recently, Cowen and Company analyst Vivien Azer initiated coverage on MedMen and four other cannabis stocks. Azer was bearish on MedMen stock and gave an “underperform” rating with a target price of $1.5. The target price represents an upside potential of 7% from the closing price on September 27.

Latest price update 

The number of analysts covering MedMen stock increased from before the results. The stock’s consensus target price fell to 5.4 Canadian dollars from 6.7 Canadian dollars before the earnings. The target price fell 19.4%. MedMen’s current revised target price indicates a potential upside of 192% over the next 12 months.

Meanwhile, Aurora Cannabis (ACB) has a target price of 10.1 Canadian dollars, which is 86% higher than its current price. Aphria (APHA) has a target price of 14.9 Canadian dollars, which is 123% higher than its current price. Cronos Group (CRON) has a target price of 19.0 Canadian dollars, which is 60% higher than its current trading price.

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MedMen’s stock performance

MedMen stock has fallen 51% year-to-date. The stock has fallen approximately 36% since the company reported its preliminary fourth-quarter earnings. The stock fell 26.5% in September. Meanwhile, Canopy Growth fell 2.7%, Aphria fell 17%, and Cronos Group fell 18.5% in September.

Tracking MedMen’s trend 

Over the past 12 months, MedMen stock received increased coverage from analysts. The company saw more revenue growth over the past 12 months.

MedMen’s expanding footprint in the US might have interested analysts. Recently, MedMen initiated a campaign in Florida to get cannabis legalized in the state. The company launched a 2020 ballot initiative called “Make It Legal Florida.” MedMen already has licenses to open 35 retail stores in Florida. The company plans to open 11 more stores in the second half of 2019. MedMen has secured 20 leases in the state.

The number of analysts covering the stock increased from six to eight during this period. However, analysts’ “buy” recommendations on the stock remain unchanged. MedMen’s target price decreased gradually during this period.

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Analysts’ ratings

While the company’s consensus target price fell after its preliminary earnings release, the consensus remains the same on the stock. The overall “strong-buy” rating didn’t change from the period before the earnings release.

Currently, among the eight analysts covering the stock, two recommend a “strong-buy,” four recommend a “buy,” one recommends a “hold,” and one recommends a “sell.”

Seven analysts recommend a “hold” for Aurora Cannabis stock. Six analysts recommend a “buy” rating for Aphria. Meanwhile, nine analysts recommend a “hold” rating for Cronos Group stock.

What’s happening in the cannabis industry?

So far, this year has been challenging for the cannabis industry. The year has been full of ups, downs, and surprises. While regulatory concerns impact the sector, more US states want to legalize marijuana. Pennsylvania, Wisconsin, and South Dakota might legalize marijuana next.

Also, the banking bill passing was good news for the industry. To learn more, read Marijuana Legalization: House Passes SAFE Act in US.

Canada will hit its second phase of cannabis legalization in October. We discussed how Aurora Cannabis, Canopy Growth (CGC) (WEED), and Aphria are gearing up for edible expansion.

Read Which Cannabis Stocks Have Lost More than 40% in 2019? and Cannabis Stocks: Will Tough Times End Soon? to learn more about cannabis stocks’ performance in 2019.


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