Excelsior Equities is terminating coverage of the cannabis sector due to reallocation of resources.
While we remain bullish on the secular trends and fundamentals of the legal cannabis sector, and we remain bullish on select operators with better balance sheets and differentiated operations trading at attractive valuations, the lack of progress in the regulatory environment makes the business opportunity in the cannabis-focused institutional equity investment market untenable.
There have been significant declines in the trading volumes, public market capitalizations, institutional involvement, and capital markets activity.
The previous ratings and target prices outlined below are now Not Rated and No Target, respectively. They will not be updated by Excelsior Equities and cannot be relied upon going forward.
Prior Ratings and Target Prices of Excelsior Equities Research Coverage:
Glass House Brands (GLASF/GLAS-A.NE, $5.80/$5.79, BUY, Target Price $11.75/$11.75)
Green Thumb Industries (GTBIF/GTII.CN, $8.17/C$11.81, BUY, Target Price $17.75/C$25.00)
High Tide Inc. (HITI/HITI.V, $3.09/C$4.42, BUY, Target Price $4.50/C$6.45)
TerrAscend (TSNDF/TSND.TO, $0.65/C$0.92, BUY, Target Price $1.55/C$2.15)
Trulieve (TCNNF/TRUL.CN, $5.18/C$7.49, BUY, Target Price $16.30/C$22.65)
Verano (VRNOF/VRNO.CN, $1.24/C$1.76, BUY, Target Price $4.25/C$5.90)
Village Farms (VFF, $0.76, BUY, Target Price $2.30)
ADVISORSHARES PURE US CANNABIS ETF (MSOS, $3.81, BUY, Target NAV $8.10)
Excelsior Equities will monitor the sector for any changes that could lead us to reevaluate our current position.
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