Canaccord: Tilt Holdings' Massachusetts Rollout Slower Than Expected
Canaccord Genuity is staying bullish on vertically integrated Canadian company TILT Holdings Inc (OTC:SVVTF) after its first-quarter print.
Need more cannabis news? Check out all of our coverage here.
"While nothing from the release or Q&A was meaningfully different from our expectations, out of an abundance of caution, we are shifting some revenue (a couple million) from Q2 to the back half of the year, primarily in Massachusetts," Burleson said of the company's May 30 quarterly report. (See his track record here.)
The company's rollout in Massachusetts has been slower than anticipated, the analyst said.
The slow rollout coupled with high spending levels to develop the business resulted in Tilt reporting first-quarter 2019 earnings of $34.4 million in revenue with negative $8 million EBITDA, Burleson said.
Canaccord expects business to uptick in Massachusetts during the second half of 2019 and into 2020, and said this trend should coincide with lower levels of spending in the state as well as the granting of additional licenses.
Over-the-counter Tilt Holdings shares were down 13.43 percent at $1.16 at the time of publication Monday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.