CA - Caution: Curaleaf's Stock May Have Gone Too Far
2024-05-17 13:25:21 ET
Summary
- Curaleaf's stock price has increased since the previous analysis, outperforming the S&P 500 Index and its peers, but may have gone too far.
- Curaleaf reported positive financial results in 2024 Q1, with strong international performance and cost control measures. However, its tax strategy with the removal of 280E tax remains unclear.
- The company's valuation is relatively high compared to its peers, and challenges remain in maintaining domestic market share. A "Hold" rating is recommended.
In my previous analysis on March 11, 2024, covering Curaleaf Holdings (CURLF), (CURA:CA), I recommended a rating of "Buy". Since then, Curaleaf's stock price has increased by about 46% compared to just 3.7% by the S&P 500 Index. Compared to peers such as Trulieve or Green Thumb Industries, Curaleaf stood out and successfully re-aligned stock prices in the past several months....
Caution: Curaleaf's Stock May Have Gone Too Far