100s of titles, one news app for just $10 a month.
Dive Deeper:
Trulieve Reports Record Q1 Revenue Of $318.3M, 64% YoY Increase & Gross Profit Of $178.2M
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) reported its results for the quarter ended March 31, 2022. Kim Rivers, Trulieve’s…
Why Should Investors Keep An Eye On Aurora Cannabis Stock Despite A Weak Quarter?
Aurora Cannabis Inc. (NASDAQ: ACB) reported financial and operational results late Thursday for the third quarter of fiscal 2022 ended March…
TerrAscend To See Top-Line & Margin Improvement In 2022, Analyst's Thoughts Post Q1 Earnings
TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) reported its first-quarter financial results late Thursday, reporting net sales of $49.7 million, up 1%…
This Cannabis Stock Is Analyst's Top Pick Among Canadian LP Group, Here's Why
Village Farms International, Inc. (NASDAQ: VFF) reported Tuesday that its consolidated sales increased 34% year-over-year to $70.2 million in the f
One subscription that gives you access to news from hundreds of sites
2 Cannabis Stocks to Avoid After Stifel Cuts Their Price Targets
Surging inflation and the Fed’s hawkish monetary policy stance could keep the stock market under pressure in the near term.…
PayPal vs. Mastercard: Which Stock is a Better Buy?
In this article I will analyze and compare PayPal Holdings (PYPL) and Mastercard (MA) to determine which stock is currently…
Get all your news in one place
Latest Business news:
Bitcoin Recovers After Longest Run of Weekly Losses Since 2011
Bitcoin recovered to trade just above the $30,000 level where it’s been mostly hovering since the collapse of the TerraUSD…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
How to Make Money (or Even Get Rich) During a Stock Market Crash
A crash creates buying opportunities if you can develop the right mindset.
HSBC suspends head of responsible investing who called climate warnings ‘shrill’
Bank investigating Stuart Kirk’s conference speech deriding flooding risks and climate warnings from UN and Bank of England
John O'Neill to front Star casino inquiry
Star Entertainment Group executive chairman John O'Neill is scheduled to appear at the gaming inquiry into its suitability to operate…
After $5 Trillion Rout, Emerging Markets Seek Turnaround Signal
The wreckage of a $5 trillion rout in emerging markets is starting to look like a buying opportunity to some…
From analysis to good news, read the world’s best news in one place
New Zealand PM Ardern to visit U.S. to boost exports, lure tourists
New Zealand Prime Minister Jacinda Ardern will visit the United States this week in a bid to boost exports and…
Rod Sims says Facebook should be forced to negotiate with SBS under news media bargaining code
Despite dozens of deals to pay Australian news publishers for content, social media company has left out SBS and the…

This Cannabis MSO Stock Is Attractively Valued & Well Positioned To Capitalize On Market Opportunities, Analyst Explains Why

By Jelena Martinovic

Trulieve Cannabis Corp. (OTCQX:TCNNF) (CSE:TRUL) reported its financial results for the first quarter on Thursday.

Kim Rivers, Trulieve's CEO, said that the Tallahassee, Florida-based company is "off to a great start in 2022."

The company delivered yet another record quarter, generating $318.3 million in revenue for the period.

"In 2022, we expect our strong balance sheet, access to capital, and financial discipline will uniquely position us to capitalize on market opportunities created by the macroeconomic factors impacting our industry," Rivers said.

The Analyst

Cantor Fitzgerald's Pablo Zuanic maintained an Overweight rating on the company's stock while lowering its price target to $57 from $59 on slightly reduced EBITDA estimates.

The Thesis

Zuanic said in his recent note that Trulieve beat FactSet consensus estimates for the quarter and reiterated guidance for fiscal 2022.

The company anticipates that the revenue for the full year will range from $1.3 billion to $1.4 billion. Adjusted EBITDA is expected to be in the range of $450 million to $500 million. 

The analyst said that "the high end of guidance both regarding top-line and EBITDA margins may be a stretch in the current environment," considering that it's not clear whether core markets will go recreational by the year-end or in 2023.

Based on its current forecasts, the company expects to boost performance in the second half of 2022 to higher than the first half of the year.

"Improving execution, more surgical promotions, and realization of efficiencies from the Harvest merger makes us confident of a stronger back half" for the company, Zuanic said.

The $2.1 billion merger of Trulieve and Harvest Health & Recreation Inc. was closed in May 2021.

The combined company is expected to become one of the most profitable multi-state cannabis operations reaching an estimated total addressable market of $19.3 billion in 2025, with leading market shares in Arizona and Florida.

"We believe the stock remains attractively valued in the group of larger MSOs, and we think the company has the balance sheet and cash flow generation to add depth and/or breadth to its footprint via M&A," Zuanic concluded.

Price Action

Trulieve's shares traded 4.39% higher at $14.51 per share at the time of writing on Friday morning.

Photo: Courtesy of Yiorgos Ntrahas on Unsplash

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Trulieve Reports Record Q1 Revenue Of $318.3M, 64% YoY Increase & Gross Profit Of $178.2M
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) reported its results for the quarter ended March 31, 2022. Kim Rivers, Trulieve’s…
Why Should Investors Keep An Eye On Aurora Cannabis Stock Despite A Weak Quarter?
Aurora Cannabis Inc. (NASDAQ: ACB) reported financial and operational results late Thursday for the third quarter of fiscal 2022 ended March…
TerrAscend To See Top-Line & Margin Improvement In 2022, Analyst's Thoughts Post Q1 Earnings
TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) reported its first-quarter financial results late Thursday, reporting net sales of $49.7 million, up 1%…
This Cannabis Stock Is Analyst's Top Pick Among Canadian LP Group, Here's Why
Village Farms International, Inc. (NASDAQ: VFF) reported Tuesday that its consolidated sales increased 34% year-over-year to $70.2 million in the f
One subscription that gives you access to news from hundreds of sites
2 Cannabis Stocks to Avoid After Stifel Cuts Their Price Targets
Surging inflation and the Fed’s hawkish monetary policy stance could keep the stock market under pressure in the near term.…
PayPal vs. Mastercard: Which Stock is a Better Buy?
In this article I will analyze and compare PayPal Holdings (PYPL) and Mastercard (MA) to determine which stock is currently…
Get all your news in one place