10 Apr

Curaleaf Holdings: Analysts’ Recommendations

WRITTEN BY Rajiv Nanjapla

Analysts’ recommendations

Among the six analysts that follow Curaleaf Holdings (CURA) (CURLF), three recommended a “strong buy,” while three recommended a “buy.” Analysts have given Curaleaf a 12-month target price of 15.61 Canadian dollars, which represents an upside potential of 32.1% from its stock price of 11.82 Canadian dollars. On March 21, Canaccord Genuity raised its target price from 13.50 Canadian dollars to 14.0 Canadian dollars.

Curaleaf Holdings: Analysts’ Recommendations

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Peer comparisons

Among the six analysts that follow MedMen Enterprises (MMEN) (MMNFF), two analysts recommended a “strong buy,” while four analysts recommended a “buy” rating. Analysts have given MedMen a 12-month target price of 8.09 Canadian dollars, which represents a return potential of 112.4% from its stock price 3.81 Canadian dollars.

Among the five analysts that cover Acreage Holdings (ACRG-U) (ACRGF), two analysts recommended a “strong buy,” while three analysts recommended a “buy.” Analysts’ 12-month target price for Acreage Holdings is 36.40 Canadian dollars, which implies a rise of 83.9% from its stock price of 19.79 Canadian dollars.

Among the three analysts that cover Planet 13 Holdings (PLTH) (PLNHF), one analyst recommended a “strong buy,” while two analysts recommended a “buy.” Analysts have set a 12-month target price of 4.83 Canadian dollars, which implies an upside potential of 68.4% from its stock price of 2.87 Canadian dollars.

Valuation multiple

As of April 9, Curaleaf was trading at a forward EV-to-sales multiple of 6.41x. On the same day, MedMen, Acreage Holdings, and Planet 13 were trading at forward EV-to-sales multiples of 3.61x, 2.54x, and 1.78x, respectively. The strong growth in Curaleaf’s stock price led to an increase in its valuation multiple.

Analysts’ expectations

Curaleaf’s management expects its revenues from managed assets to reach $400 million in 2019. For the same period, analysts expect the company to post revenues of $482.77 million, which represents a rise of 383.5% from $99.86 million in 2018. Analysts expect the company to make profits this year. Curaleaf’s net profits are expected to be $60.8 million—compared to a loss of $47.6 million in 2018.

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25 Jun

Hang Seng and Nikkei 225 Lose amid Trade Worries

WRITTEN BY Mayur Sontakke, CFA, FRM

After rising marginally yesterday, Hong Kong’s Hang Seng Index fell today. The index lost 1.15% to end at 28,185.98. Only seven stocks in the index rose, while 39 declined. Four remained unchanged. Tencent Holdings (TCEHY) was one of the worst performers with a 1.8% fall.