GRWG - GrowGeneration Rises In Current Cannabis Rally (Reiterate Hold)

2024-04-08 16:42:15 ET

Summary

• GrowGeneration is still undergoing right-sizing and shows recovery in its financial performance.
• The company recently reported some improvement in its Q4-2023 financials, but its 2024 outlook indicates further recovery.
• The stock price is undervalued and on the uptrend, but the current cannabis sector rally is expected to end, causing a pullback in cannabis stocks.
• I reiterate my rating of a Hold and recommend that investors watch the stock and developments in the sector.

GrowGeneration ( GRWG ) is up 41.5% since I covered the company last November. At the time, I rated the company as a Hold and now I reiterate that rating. The current cannabis rally continues to give huge gains to the sector with Canopy Growth ( CGC ) up 241% over 1-mo, SNDL ( SNDL ) up 62.5%, Tilray ( TLRY ) up 56%, and GrowGeneration up 33.5%. The MSOs ETF ( MSOS ) is up 18.6% over 1-mo and 93% over 1-yr....

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