Nucor earnings beat by $0.08, revenue fell short of estimates
Tuesday, Curaleaf Holdings Inc (OTC: OTC:CURLF) saw its price target reduced by Craig-Hallum to $1.00, a significant decrease from the previous target of $2.50. Despite the cut, the firm retained a Hold rating on the stock. According to InvestingPro data, the stock has declined nearly 75% over the past year and currently trades at $1.18, near its 52-week low of $0.88. InvestingPro analysis suggests the stock may be undervalued at current levels. Eric Des Lauriers at Craig-Hallum provided insights into the decision, citing ongoing pricing pressure as a major industry challenge, with an average price compression of around 14% in 2024 as reported by Curaleaf (TSX:CURA)’s management.
Curaleaf, generating $1.36 billion in revenue over the last twelve months and recognized as the largest cannabis operator by revenue, is expected to gain from potential federal reform and the expansion of the European market. Over the past two quarters, the company has been concentrating on stabilizing its business through its "Return to our ROOTS" initiative. InvestingPro subscribers can access 8 additional key insights about Curaleaf’s financial health, which currently rates as GOOD according to comprehensive analysis. This strategy aims at optimizing margins and cash flow while reducing debt and fostering organic growth.
The company’s growth in 2025 is anticipated to be driven primarily by international markets, New York, Ohio, and hemp-derived products. Curaleaf’s efforts to increase its offering of premium quality flower is also expected to contribute positively to revenue, especially in key markets like Florida and Arizona where the company previously underperformed in this category.
Des Lauriers noted that the capital expenditures necessary for enhancing flower quality have already been made, and the company is seeing improvements in product quality. This progress is seen as a positive sign for the future of the company’s stock. However, the analyst expressed a cautious stance, opting for a wait-and-see approach due to the mixed performance history and the current negative sentiment towards the sector among investors.
The new price target of $1.00 is based on an enterprise value (EV), including uncertain tax liability as debt, of 8.8 times Craig-Hallum’s 2026 adjusted EBITDA estimate of $283 million for Curaleaf. Currently, the company trades at an EV/EBITDA multiple of 7.62x, with a current EBITDA of $253.17 million. For deeper insights into Curaleaf’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro.
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