Wedbush starts ‘top-tier cannabis operator’ Cresco Labs with an Outperform

Wedbush analyst Gerald Pascarelli initiated coverage of Cresco Labs (CRLBF) with an Outperform rating and $4.50 price target. The company’s Columbia Care (CCHWF) acquisition, which is expected to close by the end of Q1 of next year, "should prove transformative," but he is modeling for standalone revenue growth to re-accelerate in the coming year on more favorable comps as well as an outlook for better trends in key states. The stock is off about 80% from peak levels, which he believes is "overdone" and he sees the shares as undervalued given that the MSO "has established itself as a market leader and top-tier cannabis operator," Pascarelli tells investors.