Green Thumb Industries (OTCMKTS:GTBIF) owns and operates Rise and Essence brand stores. On June 27, Green Thumb Industries opened its fifth Essence brand store in Las Vegas and its 48th retail store in the US. The store is located at 6410 South Durango Drive in Las Vegas. Essence provides in-store pickup, curbside pickup, and delivery services for pre-orders. The company announced that it will donate all the first-day profits from the store to the Last Prisoner Project—a non-profit organization that fights to restore justice in the cannabis industry.
On opening the new store, Green Thumb’s founder and CEO, Ben Kovler, said, “We are thrilled to open our fifth Essence location in Nevada and the second Essence store in Las Vegas this year following Essence South Rainbow’s opening in May. We are incredibly proud of our team’s continued resilience and execution throughout the COVID-19 crisis.”
Green Thumb also produces and markets its products in Nevada. The company’s brands include Cannabiotix, Desert Grown Farms, Dogwalkers, Incredible, and Rythm. Meanwhile, the company has licenses to add six more stores in the state. Currently, Green Thumb operates 13 manufacturing facilities. The company also owns licenses to open 96 stores across 12 markets in the US.
Green Thumb’s stock performance
On June 26, Green Thumb stock fell 0.8% amid the weakness in the broader equity markets due to the spike in coronavirus cases. The company has returned 7.1% YTD and outperformed its peers and cannabis ETFs. During the same period, Curaleaf Holdings (OTCMKTS:CURLF), Cresco Labs (OTCMKTS:CRLBF), and MedMen Enterprises (OTCMKTS:MMNFF) have fallen by 1.6%, 38.3%, and 60%, respectively. The ETFMG Alternative Harvest ETF (NYSE:MJ) has fallen by 25.1%.
Last month, Green Growth reported an impressive first-quarter performance. The company reported revenues of $102.6 million, which beat analysts’ expectation of $92.1 million. The company’s EBITDA came in at $25.5 million with an EBITDA margin of 56%—an improvement from 45.8% in the same quarter of the previous year. The strong first-quarter performance led to a rise in the company’s stock price.
Analysts’ expectations and ratings
Analysts expect Green Thumb to report revenue of $457.5 million in 2020. The amount is a rise of 111.4% from $216.4 million in the previous year. Expanded production and manufacturing facilities, new store openings, and the development of innovative products could drive the company’s revenue. For the same period, the company will likely report an EBITDA of $116.3 million, which represents a rise of 203.1% from $38.4 million in 2019.
On May 15, Robert Fagan of Stifel reiterated his “buy” rating and raised his target price from 32 Canadian dollars to 34 Canadian dollars. Following Green Thumb’s impressive first-quarter performance, Fagan raised his expectation for this year and next year, as reported by Cantech Letter. He expects the company to report revenue and an EBITDA of $484 million and $146 million in 2020. Fagan expects the company to post revenue of $730 million and an EBITDA of $261 million in 2021.
Overall, analysts are bullish on Green Thumb Industries. All of the 13 analysts that follow the company have given a “buy” rating. As of June 26, analysts’ consensus target price was 22.40 Canadian dollars, which represents a return potential of 63.5%.