Cowen, which set a new price target of $5 a share, is bullish after the Boca Raton, Fla., company on Sept. 1 closed its merger with KushCo.
"Combined, the company will be a clear leader in the ancillary cannabis space where distinct customer bases should provide a platform for cross-selling opportunities and scale in addition to cost efficiencies," Cowen's note said.
The company should benefit from a "suite of complementary products" that go across multiple categories including vape hardware and technology as well as packaging and supplies.
Greenlane expects between $15 million and $20 million in cost savings over the next 24 months from the deal with Kush.
To be sure, the Cowen analysts said, Greenlane could see some headwinds as port disruptions and shipping delays continue to hinder operations.
Those two issues were the main reason the company withdrew its 2021 guidance for between $310 million and $330 million in revenue with a gross margin between 22% and 24%, the analysts said.
Greenlane shares at last check were 14% higher at $2.91.