Analyst Neal Gilmer from Haywood reiterated a Buy rating on Cresco Labs and keeping the price target at 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’ financial performance and strategic actions. Cresco Labs reported financial results for Q2 2025 that aligned with expectations in terms of revenue, but exceeded forecasts in terms of gross margins and EBITDA. The company achieved a notable improvement in EBITDA margins, rising to 25.0% from 21.9% in the previous quarter, which indicates effective cost management and operational efficiency.
Additionally, Cresco Labs has taken steps to refinance its credit facility, which could strengthen its financial position moving forward. Despite a slight decline in revenue both sequentially and year-over-year, the company managed to deliver adjusted gross profit margins and EBITDA that surpassed estimates. These positive financial indicators, coupled with a strategic refinancing effort, underpin Neal Gilmer’s confidence in maintaining a Buy recommendation with a target price of $2.00, based on a valuation multiple applied to future EBITDA projections.
Gilmer covers the Healthcare sector, focusing on stocks such as Green Thumb Industries, Cresco Labs, and OrganiGram Holdings. According to TipRanks, Gilmer has an average return of -7.0% and a 40.77% success rate on recommended stocks.