Roth MKM analyst Scott Fortune downgraded Cresco Labs (CRLBF) to Neutral from Buy with a price target of $1.75, down from $6, after the company reported Q4 revenue and AEBITDA that were both below consensus on wholesale weakness and inventory adjustments due to pricing compression and increased verticalization among peers. The firm sees limited recovery in Q1 and says there is limited visibility on the timing of divestitures to close the Columbia Care (CCHWF) merger, adding that "the 70% arbitrage spread suggests the deal is not expected to close."
Published first on TheFly
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Read More on CRLBF:
- Alliance Global Partners keeps Buy on Cresco Labs, lowers price target to C$6.50
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- Cresco Labs downgraded to Neutral at Piper on lack of clear catalysts
- Cresco Labs downgraded to Neutral from Overweight at Piper Sandler
- Columbia Care, Cresco Labs extend acquisition closing timeline to June 30
