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Is Curaleaf stock still a buy?

CURA stock

The stock has been a steady climber since last October, but ahead of earnings is Curaleaf (Curaleaf Stock Quote, Chart, News, Analysts, Financials TSX:CURA) still a buy?

On May 9, after market close, CURA will report its Q1,2024 results.

Beacon Securities analyst Russell Stanley laid out what he expects from the quarter.

“We are looking for revenue/adjusted of $337M/$71M, which looks conservative against current consensus at $340M/$80M,” he wrote. “Current revenue forecasts range $335-$345M, while our adjusted EBITDA forecast is the current street low, with the range at $71-$87M. During its Q4 earnings call in early March, CURA guided to Q1 revenue being flat-todown slightly from $345M in Q4. We are also looking for operating cash flow of $21M. While that is in line with consensus, FactSet shows just three estimates ranging $2-$33M.

In a research update to clients May 2, Stanley maintained his “Buy” rating and price target of $8.00 on CURA, implying a return of 2% at the time of publication.

The analyst thinks CURA will post Adjusted EBITDA of $337-million on revenue of $1.43-billion in fiscal 2024. He expects those numbers will improve to Adjusted EBITDA of $447-million on a topline of $1.60-billion in fiscal 2025.

“CURA now trades at 11.8x our F2025 adjusted EBITDA forecast, representing a 44% premium to the 8.2x average among the other four major MSOs,” Stanley noted.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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