Wedbush Initiates Coverage On Cresco Labs, Curaleaf Holdings With Outperform Ratings

  • Wedbush analyst Gerald Pascarelli initiated coverage on Cresco Labs Inc (OTC: CRLBF) with an Outperform rating and a price target of $4.50.

  • The company awaits the closing of the Columbia Care (OTC: CCHWF) acquisition, which is expected to occur by the end of 1Q23 and should prove transformative.

  • He expects standalone revenue growth to re-accelerate in the coming year on more favorable comparable sales as well as an outlook for better trends in key states.

  • With the stock off about 80% from peak levels, Pascarelli believes that the selloff is overdone and that Cresco’s shares are undervalued.

  • While he expects scale, market share and whitespace to be the initial focus, the company will need to demonstrate the ability to cut costs post close, as CCHWF will be margin dilutive to the combined company at the outset.

  • Wedbush analyst Gerald Pascarelli also initiated coverage on Curaleaf Holdings Inc (OTC: CURLF) with an Outperform rating and a price target of $8.50.

  • Curaleaf is the largest cannabis operator in the U.S. and should be well positioned to realize incremental benefits from the rollout of adult use sales in new states in addition to benefitting from better performance in the many legacy markets to which it is exposed, the analyst noted.

  • The analyst expects the company to be a net market share gainer and outpace the broad industry.

  • An expected reduction in spending should position the company to reap the benefits from a historical capital intensive investment cycle and importantly protect its cash position, Pascarelli added.

  • Price Action: CRLBF shares are trading higher by 4.70% at $3.717, and CURLF shares are trading higher by 0.28% at $7.04 on the last check Friday.

Latest Ratings for CRLBF

Date

Firm

Action

From

To

Nov 2021

Cantor Fitzgerald

Maintains

Overweight

Nov 2021

Cantor Fitzgerald

Maintains

Overweight

Aug 2021

Cantor Fitzgerald

Maintains

Overweight

View More Analyst Ratings for CRLBF

View the Latest Analyst Ratings

See more from Benzinga

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: https://finance.yahoo.com/news/wedbush-initiates-coverage-cresco-labs-193242740.html