80% Leverage, 5.5x EBITDA: Is Cresco The High-Risk, High-Reward Play Investors Need?
Despite flat earnings and challenging market conditions, Cresco Labs Inc. (OTC:CRLBF) remains an “Overweight” stock, according to analysis firm Zuanic & Associates. In his latest report, Zuanic underscores Cresco’s strong positioning in emerging adult-use markets such as Pennsylvania and Ohio while identifying valuation advantages that set the company apart.
Cresco trades at 5.5x forward EBITDA, below Green Thumb Industries Inc. (OTC:GTBIF) at 7x and Curaleaf Holdings Inc. (OTC:CURLF) at 10x.
“This discount presents an appealing entry point for investors looking beyond short-term volatility,” Zuanic writes.
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Market Dynamics: Cresco In The Tier 1 Landscape
Zuanic’s report benchmarks Cresco against other Tier 1 multi-state operators (MSOs), including Green Thumb, Trulieve Cannabis Corp. (OTC:TCNNF), Verano Holdings Corp. (OTC:VRNOF), and Curaleaf.
While Cresco’s third-quarter revenue of $180 million …