Is Cresco Labs An Overlooked Cannabis Stock? Market Potential In Ohio, Florida & Pennsylvania Promise Opportunity
Despite trading at a discount to its peers, this company is well-positioned to benefit from various dynamics, presenting a potential opportunity for investors. A Monday morning note from Zuanic & Associates, rates Cresco Labs (OTC:CRLBF) as “Overweight” among the top five multi-state operators (MSOs) in the U.S.
“Cresco’s valuation discount is not entirely warranted, given its significant upside from regulatory changes and the strides it has made on the profitability front,” said senior analyst Pablo Zuanic.
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Valuation Reflects Upside Potential
In terms of valuation, Cresco, one of the top five multi-state operators (MSOs), has a CY24 EV/Sales multiple of 1.7x, lower than the average of its peers, which range from 1.9x to 3.0x. Its EV/EBITDA ratio is 5.9x, while others, like Curaleaf (OTC:CURLF), reach 12.9x.
This lower multiple, combined with the company’s strategic positioning, minimizes potential downside risk. “Cresco’s valuation metrics relative to its …