Over the last week, Trulieve Cannabis (CSE: TRUL) went on a virtual roadshow mainly focused on talking to international investors featured by Canaccord Genuity. Derek Dley, their analyst, says, “We came away from the investor meetings with increasing confidence in the company’s ability to develop market-leading positions in recently entered states, and through leveraging its pending acquisition of Harvest Health and Recreation.” He reiterated their C$97 12-month price target and speculative buy rating.
Trulieve currently has 15 analysts covering the company with a weighted 12-month price target of C$87.66, an 84% upside. Out of 15 analysts, four analysts have strong buy ratings and the other 11 have buy ratings. The street high sits at C$132 from Stifel-GMP, while the lowest sits at C$62.25 from Needham & Company.
Dley says that the roadshow focused on three specific bull points. One is the “sustainability of Trulieve’s dominance in the Florida market.” The second is the drivers and synergies behind the Trulieve and Harvest Health acquisition. The third is to inform investors about the “numerous state by state and federal pro cannabis tailwinds.”
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For the first point, Dley says that the company has retained a 50% market share due to the removal of the dispensary cap, being first to market with new form factors, having “immense” brand loyalty, and strong brand power. Dley says, “we believe Trulieve is well-positioned to continue its dominance within Florida over the course of our forecast period.”
Canaccord says that the expiration of the HSR review period keeps the timeline intact for the Harvest acquisition to close by the end of the year. Dley says, “Harvest brings a market leadership position in the fast growing, recently adult use legal market of Arizona.” Canaccord believes that the Arizona market is the most attractive market in the U.S and that the acquisition will boast Trulieve’s position in Pennsylvania, which “will be well positioned should the state introduce an adult use program within the next 12 months.”
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.
