Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Trulieve Cannabis Corp. (OTCQX:TCNNF) revenue in 2022 was $1.2 billion, a 32% increase compared to $938 million in 2021. In the fourth quarter of 2022, the company had a revenue of $302 million, a 1% decrease compared to $305 million in the same period of 2021, and a net loss of $77 million, compared to a net loss of $72 million in the same quarter of 2021.
One of the largest multi-state cannabis operators achieved a positive adjusted EBITDA of $85 million in the quarter, representing a 16% decrease compared to $101 million in Q4 2021.
The Analyst
Cantor Fitzgerald’s analyst Pablo Zuanic, kept an ‘Overweight’ rating and lowered the price target on Trulieve stock to $37 from $41 to address lower profit margin trends.
The Thesis
The company’s sales improved only 0.5% sequentially compared to the 4% the analyst predicted, due to the unexpected change in prices. Its adjusted gross margins were mostly affected by price competition, mix, and consumer trade down, according to Zuanic.
“With $219 million in cash, below average cost of debt, and unencumbered assets, we believe Trulieve is well-placed to benefit from merger and acquisition opportunities in the year ahead (assets, spin-offs, as well as companies). The latter combined with ongoing good progress on putting recreational legalization in the Florida Nov’24 ballot, bode well for the stock, in our opinion,” said Zuanic who is a speaker at April’s Benzinga Cannabis Capital Conference in Miami.
Trulieve is projecting a slight sequential sales decline for the first quarter of 2023, around $300 million, compared to FactSet consensus of $310 million. This year, the focus will be on preserving cash, profitability, and cash flow.
Price Action
Trulieve shares were trading 0.64% higher at $6.31 at the time of writing Thursday.
Photo: Courtesy of Richard T on Unsplash
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!