In a report released today, Neal Gilmer from Haywood reiterated a Buy rating on Cresco Labs (CRLBF – Research Report), with a price target of C$2.00.
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Neal Gilmer has given his Buy rating due to a combination of factors, primarily focusing on Cresco Labs’ strategic emphasis on cash generation and balance sheet improvement. Despite a slight decline in revenue, the company has demonstrated strong cash flow generation, with $132 million in operating cash flow in 2024 and $30.5 million in Q1 2025, indicating robust financial health and operational efficiency.
Additionally, Cresco Labs’ vertically integrated operations in key markets such as Ohio, Pennsylvania, and Florida, along with the potential growth from new markets, are expected to drive future growth. The company also maintains a strong cash position, with $162.1 million in cash and equivalents, marking its highest cash balance in three years. These factors, combined with a positive outlook for gross margins and free cash flow, underpin Gilmer’s confidence in Cresco Labs’ long-term growth prospects.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a C$1.50 price target.