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iAnthus Capital Holdings’ Q4 Results Drove Its Stock Price

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Stock performance

After iAnthus Capital Holdings (ITHUF) (IAN) posted its fourth-quarter earnings on April 2, the company’s stock price rose and closed the day at 7.61 Canadian dollars—a rise of 1.7% from the previous day’s closing price. YTD (year-to-date), the company’s stock price has increased 38.4%. During the same period, Acreage Holdings (ACRG-U) (ACRGF), MedMen Enterprises (MMEN) (MMNFF), and Planet 13 Holdings (PLNHF) (PLTH) have returned 8.5%, 3.9%, and 53.9%, respectively. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 51.4%.

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Valuation multiple

As of April 2, iAnthus Capital Holdings was trading at a forward EV-to-sales multiple of 3.80x. On the same day, MedMen Enterprises, Acreage Holdings, and Planet 13 Holdings were trading at forward EV-to-sales multiples of 3.78x, 2.50x, and 1.40x, respectively.

Analysts’ recommendations

Among the seven analysts that follow iAnthus Capital Holdings, one recommended a “strong buy,” while six recommended a “buy.” Analysts’ average 12-month target price is 11.06 Canadian dollars, which implies an upside potential of 45.3% from its stock price of 7.61 Canadian dollars.

Peer comparisons

Among the five analysts that follow Acreage Holdings, two recommended a “strong buy,” while three recommended a “buy.” Analysts’ average 12-month target price is $36.40, which represents a return potential of 76.6% from its stock price of $20.67 on April 2.

Among the seven analysts that follow MedMen Enterprises, two recommended a “strong buy,” while five recommended a “buy.” Analysts’ average 12-month target price is 7.97 Canadian dollars, which implies an upside potential of 99.3% from its stock price of 4.00 Canadian dollars.

Among the three analysts that follow Planet 13 Holdings, one recommended a “strong buy,” while two recommended a “buy.” On average, analysts have given the stock a 12-month target price of 4.83 Canadian dollars, which represents a rise of 111.1% from 2.29 Canadian dollars.

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