The latest data from the Office of Medical Marijuana Use supports the thesis that Florida is one of America’s most vibrant medical markets and Trulieve Cannabis Corp. (OTC:TCNNF) enjoys a strong competitive position in this market, according to Cantor Fitzgerald.
The Trulieve Cannabis Analyst
Cantor’s Pablo Zuanic maintained an Overweight rating for Trulieve Cannabis, while raising the price target from $50 to $52.
The Trulieve Cannabis Thesis
Trulieve Cannabis has been gaining market share and its sales-per-store figures are meaningfully higher than peers, Zuanic said in the note.
Patient count in the Florida market has risen by 20% year to date, while flower volumes have surged 80% sequentially, the analyst mentioned. He added that volumes for other products like vapes, concentrates and topicals grew by 35% in the first half of the year.
Zuanic further noted that lifting the cap on stores and cultivation capacity will result in the largest companies strengthening their foothold in the market, as few have the size of investment required to tap on the opportunity.
The analyst expects Trulieve Cannabis to generate sales growth of 18% in the second quarter, beating the consensus estimate of 10%. He added that although a resurgence of Covid-19 infections represents a risk, the outbreak had not hurt sales in the first half of the year.
Shares of Trulieve Cannabis had appreciated by 3% to $12.64 at the time of publication Tuesday.