Analyst Neal Gilmer of Haywood reiterated a Buy rating on Trulieve Cannabis, retaining the price target of C$15.00.
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Neal Gilmer has given his Buy rating due to a combination of factors, primarily focusing on Trulieve Cannabis’s strong financial performance and operational efficiency. The company reported second-quarter results that were in line with revenue expectations, but what stood out were the impressive margins that exceeded forecasts, leading to an EBITDA that surpassed both the analyst’s and consensus estimates.
Trulieve’s ability to maintain a high gross margin of 60.6% and an adjusted EBITDA margin of 36.6% demonstrates its operational strength. Despite a slight anticipated decline in revenue for the next quarter due to seasonal impacts, the company’s robust cash flow and substantial cash reserves provide a solid financial foundation. Additionally, the increase in customer traffic and product sales, along with strong customer retention rates, further supports the positive outlook for Trulieve’s stock.