Jushi Holdings Revs Up, Unleashing Torque In Pennsylvania And Virginia’s Cannabis Expansion
In a recent comprehensive analysis by senior analyst Pablo Zuanic of Zuanic & Associates, Jushi Holdings (OTC: JUSHF) stands out as a multi-state operator (MSO) with significant market cap upside potential, particularly from developments in Pennsylvania and Virginia.
Zuanic underscores Jushi’s leading position to benefit from regulatory shifts in these states.
Financial Outlook
Jushi’s current enterprise value (EV) is calculated at $414 million, trading below the MSO average at 1.5x EV to current sales. This undervaluation overlooks the substantial upside from Pennsylvania and Virginia, suggesting a rerate is imminent as regulatory clarity emerges.
Zuanic’s analysis also addresses Jushi’s financial maneuvers and strategic positioning, including debt management and market expansion strategies, indicating a cautiously optimistic outlook for the company’s future.
Bull And Bear Cases
Zuanic articulates a bullish scenario where Jushi’s EBITDA could quintuple, assuming Pennsylvania and Virginia initiate recreational sales. This could propel the company’s valuation to significant heights, potentially making the company an attractive acquisition target.
Conversely, the bear case suggests a limited downside due to ongoing growth in Virginia’s medical program and operational efficiencies, despite challenges in other markets.
Pennsylvania’s Promise
Jushi is poised for a market cap surge of over 250% if Pennsylvania
initiates recreational cannabis sales, leading the pack among MSOs. With PA’s well-developed medical marijuana market generating sales above $1.5 billion and home to over 430,000 active patient certifications, the transition to recreational sales …