Cannabis firm Cresco Labs beats Q3 revenue expectations

Overview

• Cresco Labs Q3 revenue of $165 mln beats analyst expectations

• Company reports Q3 net loss of $22 mln, impacted by debt refinancing costs

• Company expands into Kentucky, plans product launch in Germany

Outlook

• Cresco Labs plans to expand with new dispensaries in Ohio and Kentucky

• Company anticipates product launch in Germany to drive growth

• Cresco Labs prepared to lead cannabis industry growth and consolidation

Result Drivers

• DEBT REFINANCING - Co refinanced debt to strengthen balance sheet and reduce total debt

• MARKET EXPANSION - New dispensaries in Ohio and expansion into Kentucky are key growth drivers

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Cresco Labs Inc is C$2.00, about 24.5% above its November 4 closing price of C$1.51

Press Release: ID:nBw6rMMD1a

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