In a recently released analyst research report, GMP Securities‘ Healthcare Equity Research Analyst, Robert Fagan, CFA, reiterated his buy rating on shares of Trulieve Cannabis Corp. (CSE:TRUL) (OTC:TCNNF) with a price target that suggests some noteworthy upside to come.
This updated analyst guidance comes just a few days after Florida-based Trulieve Cannabis Corp. reported Q4 and fiscal year-end 2018 financials which showed massive revenue growth for the company on a quarter-over-quarter basis.
Robert Fagan, CFA’s price target of $26.00 CAD per share implies a potential upside of approximately 52.49% based on the last traded price of $17.05 CAD per share on the CSE.
According to Cantech Letter, “The analyst says that eight out of the company’s 13 cannabis stores are generating approx. $7 to $9 million in annualized sales, which he calls impressive, at twice the industry average in the US. Fagan points out that TRUL reaffirmed its 2019 guidance, announced in September of last year, which calls for revenues of $214 million and EBITDA of $92 million. But Fagan contends that with the vast majority of the guidance seeming to come from TRUL’s Florida operations, the forecast excludes potential contributions from its smokable flower and edibles market, its network growth beyond 33 stores and any future M&A activity. Thus, he expects a guidance update will come sometime this summer.”
Fagan wrote:
“Q4 results show TRUL is still the clear leader in FL which exemplifies its capabilities to effectively compete amid an increasingly competitive market. In addition, TRUL opened the most stores in its history in Q4 while maintaining good cost control, highlighting solid execution. Lastly, TRUL’s 2019 guidance is unchanged from Sept. 2018 levels, suggesting there could be considerable upside.”
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