CA - Trulieve Is Still Not A Good Cannabis Stock
2024-06-02 04:03:44 ET
Summary
- Trulieve reported Q1 results, beating revenue and adjusted EBITDA estimates with 4% sequential revenue growth and a 21% increase in adjusted EBITDA.
- Analysts have revised their outlook for Trulieve, projecting 5% revenue growth and a 16% increase in adjusted EBITDA for 2024.
- The stock's chart indicates a potential top, and its valuation is not significantly better than its peers, making it less attractive for investment compared to other MSOs.
In March, I downgraded Trulieve ( OTCQX:TCNNF ) from "Hold" to "Sell" and caught a lot of flack from readers that questioned my thinking. After all, we were moving towards rescheduling of cannabis as well as towards Florida voters having the chance to vote in November to legalize cannabis for adult-use in the state. The stock should have benefitted from the announcement by the DEA that it is recommending changing cannabis from Schedule 1 to Schedule 3 and from the ruling of the Supreme Court in Florida that voters will indeed get to vote in November to legalize cannabis. No, though: Trulieve has dropped since that article!
Trulieve Is Still Not A Good Cannabis Stock