Cresco Labs downgraded yesterday to Speculative Buy at Canaccord

As previously reported yesterday afternoon, Canaccord downgraded Cresco Labs (CRLBF) to Speculative Buy from Buy with a price target of C$1.50, down from C$2.50. Higher competition in core markets, the strategic decision to work with more creditworthy customers in its wholesale business, and a regulator-driven decision to change seed-to-sale traceability systems all contribute to Cresco’s muted outlook for the rest of the year, but the firm believes Cresco remains a “highly productive operator with dominant branded market share” in key states such as Illinois and Pennsylvania, as well as a nascent but growing presence in newer markets such as Kentucky, the analyst tells investors.