NJ cannabis vote ‘crushing blow’ for Curaleaf, says Wedbush

Late yesterday, the New Jersey Cannabis Regulatory Commission declined to renew the annual licenses for Curaleaf, which permits the company to cultivate and sell adult use cannabis within the state, Wedbush analyst Gerald Pascarelli the analyst tells investors in a research note. Should the decision hold, the company’s approval to sell adult use cannabis products will lapse next Friday, the firm points out. It says the "unexpected ruling clearly represents a crushing blow" for Curaleaf. With U.S. cannabis in the midst of a broad slowdown due to overcapacity and price compression, New Jersey has been one of the few bright spots from both a revenue and profitability perspective, says Wedbush. It has an Outperform rating on the shares with an $8.50 price target.