JUSH stock is a buy, Beacon says

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.”