The Globe and Mail reports in its Tuesday, Dec. 10, edition that ATB Capital analyst Frederico Gomes has downgraded Terrascend to "sector perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Gomes cut his share target by a loonie to $1.75. Analysts on average target the shares at $3.11. Mr. Gomes says in a note: "We think Terrascend is an M&A story. The company still has a relatively low revenue base, and scale needs to be achieved to drive operating leverage and expand adj. EBITDA margins to the mid-20s. Near-term organic growth opportunities are currently scarce in the industry. We like Terrascend's track record of acquisitions (Maryland has surpassed expectations), but it is hard to model out and bake M&A-driven growth into our base-case estimates. As a result, we have lowered our rating to 'sector perform,' keeping in mind that retail expansion in New Jersey and Michigan, as well as entrance into new states (potentially through a transformational acquisition), could be upside to our estimates." The Globe reported on July 6, 2023, that Mr. Gomes had resumed coverage of Terrascend with an "outperform" recommendation and $3.50 share target. It was then worth $2.32.