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Canaccord lifts Glass House Brands shares target on strong Q1 results

EditorEmilio Ghigini
Published 2024-05-16, 06:46 a/m

On Thursday, Canaccord Genuity (TSX:CF) updated its stance on Glass House Brands Inc. (OTC: GLASF) shares, raising the price target to $12.00 from the previous $9.00, while keeping a Speculative Buy rating.

The adjustment follows Glass House Brands' reported earnings that exceeded Q1 expectations and provided a promising guidance for Q2, including revenue, gross margins, and EBITDA.

The firm's analysis indicates that while the 2024 outlook for Glass House Brands remains largely unchanged, the potential for exceeding full-year estimates is likely due to the full operational status of Greenhouse 5 and expected improvements in cultivation metrics.

Additionally, Canaccord suggests that the conservative 2024 outlook includes a cautious approach to pricing in the second half of the year, which may not materialize or at least will limit downside risks, barring unforeseen factors like adverse weather conditions.

Canaccord has slightly increased its estimates for Glass House Brands based on the company's recent performance. The new price target of $12.00 is justified by an anticipated multiple expansion, which is expected to stem from Glass House Brands' proven track record in managing complex production expansions and navigating the challenging legal cannabis market in California.

The analyst firm also points to the potential benefits Glass House Brands may reap from another round of attrition in California's legal cannabis market. Furthermore, the firm acknowledges the improving regulatory landscape at the federal level as a positive factor for the company's future performance.

Glass House Brands' recent achievements and the subsequent price target increase reflect the company's strong position in the market and its ability to execute strategic initiatives effectively. The raised price target by Canaccord Genuity underscores the firm's confidence in the company's growth trajectory and operational success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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