Curaleaf Is Up ~40% in 2019: Is There More Upside?



Stock performance

As of February 5, Curaleaf Holdings (CURA) (CURLF) was trading at 9.07 Canadian dollars, which represents a rise of 40.4% since the beginning of 2019. The company is currently trading 77.1% higher than its 52-week low of 5.12 Canadian dollars and 21.1% lower than its 52-week high of 11.49 Canadian dollars.

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Driving factors

The optimism surrounding cannabis stocks and the legalization of hemp on December 28, 2018, drove Curaleaf’s stock price. Curaleaf had launched Curaleaf Hemp, a line of premium hemp-based CBD products in November 2018, which are offered in a wide variety of flavors and formats.

Also, the company’s stock price was positively impacted by the appointment of Neil Davidson as its CFO and Todd Goffman as its general counsel and secretary last month. The company also appointed Peter Clateman as the executive vice president of business development and Jonathan Faucher as executive vice president of finance. By January 11, 2019, the company had expanded its footprint to 13 states, covering an addressable market size of $7.7 billion out of the total US market size of $11.0 billion in 2018 as estimated by Arcview.

Peer comparisons

In comparison, Curaleaf’s peers MedMen Enterprises (MMEN) (MMNFF), Canopy Growth (WEED), and Aurora Cannabis (ACB) have returned 8.6%, 74.2%, and 52.5%, respectively. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 50.5%.

In this series, we will look at Curaleaf’s current operations, its products, and analysts’ estimates and recommendations. First, let’s look at its current operations.


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