Street View: Trulieve building war chest before expected Florida cannabis vote

Trulieve Cannabis

09/03/2023 12:20

** Trulieve Cannabis Corp  TRUL.CD  on Wednesday forecast
sequentially lower Q1 revenue after reporting quarterly results
that missed market expectations amid lower consumer spend due to
inflationary pressures
    ** However, co also said that it expects positive free cash
flow in 2023 and to reduce capital spending by 50%
    ** Stock is down 15.3% YTD till Wednesday's close
    
    FOCUS ON CASH GENERATION 
    
    ** ATB Capital Markets("outperform", PT: C$28) says
Trulieve's prioritizing of inventory reduction would pressure
gross margin but increase cash generation
    ** Alliance Global Partners ("buy", PT: C$24) says TRUL
holds one of the stronger balance sheets in the industry and the
company's new facility in Florida could help maintain its
leadership position there ahead of a possible vote on
recreational cannabis legalization in 2024
    ** BTIG ("buy", PT:C$21) says among the cannabis companies
which operate in multiple states, TRUL is the most likely
candidate to make a "meaningful acquisition of a distressed
operator" this year

 (Reporting by Sourasis Bose in Bengaluru)
 ((Sourasis.bose@thomsonreuters.com))