(Total Views: 215)
Posted On: 05/11/2021 7:15:54 PM
Post# of 4861
Analyst: Cannabis Co. Curaleaf Could Easily Reach Its Full-Year Sales Targets Of $1.3 Billion
Nina Zdinjak 8 hrs ago
Curaleaf Holdings (OTC: CURLF) posted its first-quarter 2021 financial results on Monday with total revenue of $260.32 million, up by 170% from the same period of 2020. The cannabis company reported a positive adjusted EBITDA of $62.63 million, which compares to $20 million in the same quarter of the prior year.
After the quarter ended, Curaleaf closed its acquisition of EMMAC, a vertically integrated cannabis company in Europe, which is said to be the biggest on the continent. What’s more, the company obtained $80 million from a strategic investor for its European business subsidiary.
The Analyst
Cantor Fitzgerald’s Pablo Zuanic restated their ‘Overweight’ rating on Curaleaf’s stock and kept their 12-month price target of $26.50.
The Thesis
Curaleaf disclosed somewhat higher sequential sales growth than Cantor had projected and has also provided guidance for further sequential sales growth in the range of 17-21%, based on serious cultivation expansion in crucial markets and new store openings, explained Zuanic in a Tuesday note.
“In our view, full-year targets would be well within reach if the company can deliver the anticipated 2Q ramp-up,” Zuanic wrote.
The company also kept its fiscal year 2021 sales guidance of $1.2 to $1.3 billion, while management projected higher margins.
“After the EMMAC deal, we believe the share price should reï¬ect international optionality,” wrote Zuanic who projected the EMMAC deal to close during the third quarter and model $35 million in sales for the back half of the year.
“Most of the larger Canadian LPs trade in a range of 8-12x CY22E EV/Sales and few are proï¬table. Our $26.50 price target is based on 8x our CY22 sales estimate.”
The Massachusetts-headquartered company has expressed confidence that U.S. Senator Chuck Schumer will introduce a cannabis reform bill this May, which Zuanic has said could be a positive catalyst for public multi-state cannabis operators.
TOODLES
Nina Zdinjak 8 hrs ago
Curaleaf Holdings (OTC: CURLF) posted its first-quarter 2021 financial results on Monday with total revenue of $260.32 million, up by 170% from the same period of 2020. The cannabis company reported a positive adjusted EBITDA of $62.63 million, which compares to $20 million in the same quarter of the prior year.
After the quarter ended, Curaleaf closed its acquisition of EMMAC, a vertically integrated cannabis company in Europe, which is said to be the biggest on the continent. What’s more, the company obtained $80 million from a strategic investor for its European business subsidiary.
The Analyst
Cantor Fitzgerald’s Pablo Zuanic restated their ‘Overweight’ rating on Curaleaf’s stock and kept their 12-month price target of $26.50.
The Thesis
Curaleaf disclosed somewhat higher sequential sales growth than Cantor had projected and has also provided guidance for further sequential sales growth in the range of 17-21%, based on serious cultivation expansion in crucial markets and new store openings, explained Zuanic in a Tuesday note.
“In our view, full-year targets would be well within reach if the company can deliver the anticipated 2Q ramp-up,” Zuanic wrote.
The company also kept its fiscal year 2021 sales guidance of $1.2 to $1.3 billion, while management projected higher margins.
“After the EMMAC deal, we believe the share price should reï¬ect international optionality,” wrote Zuanic who projected the EMMAC deal to close during the third quarter and model $35 million in sales for the back half of the year.
“Most of the larger Canadian LPs trade in a range of 8-12x CY22E EV/Sales and few are proï¬table. Our $26.50 price target is based on 8x our CY22 sales estimate.”
The Massachusetts-headquartered company has expressed confidence that U.S. Senator Chuck Schumer will introduce a cannabis reform bill this May, which Zuanic has said could be a positive catalyst for public multi-state cannabis operators.
TOODLES
(1)
(1)Scroll down for more posts ▼
