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JUSH stock is a buy, Beacon says

JUSH stock

With its first quarter results on deck, Beacon Securities analyst Russell Stanley thinks Jushi Holdings (Jushi Holdings Stock Quote, Chart, News, Analysts, Financials CSE:JUSH) is a buy.

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

Stanley outlined what he is looking for from the quarter.

“We are looking for revenue/adjusted EBITDA of $65M/$11M v. current consensus at $66M/$10M. Current revenue forecasts range $64-$68M while adj EBITDA estimates range $8-$12M,” he said.

In a research update to clients May 2, Stanley maintained his “Buy” rating and price target of $1.75 on JUSH, implying a return of 72% at the time of publication.

The analyst thinks the company will post Adjusted EBITDA of $56-million on revenue of $276-million in fiscal 2024. He expects those numbers to improve to Adjusted EBITDA of $77-million on a topline of $320-million in fiscal 2025.

Stanley says upcoming debt maturity will be a focus.

“With its Q4 results in March, management stressed that de-levering the balance sheet is a priority for F2024, adding that its focus is on non-dilutive avenues for addressing the December 2024 maturity of its senior secured credit facility,” he wrote. “While the balance owing will be down to $50M by December, management predicted that between existing cash/cash flow, the expected proceeds from its ERTC claim, and non-core asset sales, $30-$40M in new debt should be sufficient to replace that facility.”

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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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