In a recently released analyst research report, Northland Securities, Inc.‘s Managing Director and Senior Research Analyst covering Special Situations, Paul Penney, just reiterated his buy rating on shares of multi-state U.S. cannabis operator MedMen Enterprises Inc. (CSE:MMEN) (OTC:MMNFF) with a very bullish price target.
This morning, MedMen announced that it has signed a binding term sheet for a senior secured convertible credit facility of up to $250,000,000 USD from funds managed by Gotham Green Partners, which will allow for major expansion. Also, this analyst update comes just days after MedMen competitor Vireo Health International Inc. (CSE:VREO) began trading on the Canadian Securities Exchange.
Paul Penney’s new price target of $9.00 USD per share implies a potential upside of approximately 176% based on the last traded price of $3.26 USD on the OTC markets.
Why Penney is Bullish on MedMen
According to Penney’s analyst update, “We believe Gotham Green’s sizable ($250M) investment into MMEN will not only provide more than ample growth capital to fuel all their respective operational needs, but provides them with an explicit validation point on MMEN’s premier cannabis retail assets and branding prowess. As such, we reiterate our OP rating and $9 PT.”
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