CA - Why I Like Cresco Labs
2024-06-05 06:50:13 ET
Summary
- Cresco Labs Q1 results show higher adjusted EBITDA and improved financial performance despite a decline in revenue.
- Analysts have raised their outlook for Cresco Labs, projecting revenue growth in 2025 and increased adjusted EBITDA for 2024 and 2025.
- Cresco Labs' stock has lagged behind its peers in the cannabis industry and is currently trading below its March 2020 closing low.
- I rate the stock a Hold for now, but it is close to being a Buy.
I last discussed Cresco Labs ( CRLBF ) here in early October. It had pulled back, and I thought it might be a buy . The stock is higher today than it was then, but a lot of good things have happened, including higher projected adjusted EBITDA and progress with rescheduling (and the elimination, consequently, of the 280E taxation). Despite this good news, the stock is up only 6.9% since that last article, and it has lagged several peers:
Why I Like Cresco Labs