Monday, September 15, 2025

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Cresco Labs: Haywood Marginally Revises Estimates Following Cultivate Acquisition

On September 3, Cresco Labs (CSE: CL) announced that they have closed their acquisition of Cultivate, a vertically integrated Massachusetts operator that was acquired for $90 million, plus a potential $68 million earn-out. Cultivate currently operates roughly 42,000 square feet of active canopy with an additional 20,000 square feet of canopy available for build-out. The company has 3 open dispensaries.

Cresco Labs currently has 17 analysts covering the name with an average 12-month price target of $23.97, or a 104% upside. Out of the 17 analysts, 5 have strong buy ratings, 11 have buy ratings and 1 analyst has a hold rating. The street high sits at $34 from Stifel-GMP while the lowest comes in at $18.

Haywood Capital Markets, which has a $12 price target and buy rating, says they have updated their 2021 and 2022 estimates as the acquisition has closed ahead of time. They write, “The expanded Massachusetts operations should position the Company to capitalize on the rapidly growing market.”

Haywood says that the deal when announced represented a 4-4.5x 2021 EV/EBITDA multiple factoring in the $68 million earnouts. Additionally, of the $75 million in shares issued, 68% will have a 4/8/12 month vesting schedule.

They give some background on the Massachusetts market. The market went adult-use back in November of 2018 and has done little over $2 billion in sales since then. With $702 million in sales in 2020 and $844 million year-to-date, that implies a sales run-rate of $1.25 billion and an 80% growth year over year.

Below you can see Haywood’s updated 2021 and 2022 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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