UPDATE: BTIG Starts Green Thumb Industries (GTII:CN) (GTBIF) at Buy
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BTIG analyst Camilo Lyon initiates coverage on Green Thumb Industries (GTII:CN) (OTC: GTBIF) with a Buy rating and a price target of Cdn$73.00.
The analyst comments "We are initiating coverage of Green Thumb Industries Inc. (GTII) with a BUY rating and C$73 price target. We view GTII as a best-in-class multistate operator ("MSO") garnering the highest ranking among the four companies on which we are launching coverage. GTII is our top pick due to its balanced mix of retail and CPG (i.e., wholesale) that can sustain total revenue growth of 50% and adj. EBITDA margins in excess of 35% for the next two years driven by: (1) diversity of the company's state exposure to the fastest growing markets, bolstered by exposure to newly legalized states, (2) high quality cannabis production that is gaining broad brand recognition, (3) solid balance sheet metrics, and (4) strength of the management team as seen through consistent execution. As the green wave gains further momentum in the U.S. this year, both legislatively and commercially, we believe GTII is uniquely positioned to continue gaining rapid market share, outpacing already accelerated growth of the market. Over the next two years, we see GTII revenues growing at an annual growth rate of at least 50%, reaching sales of $1.3B by 2022. What's more, GTII's geographic investments in New Jersey, New York, Connecticut, and Pennsylvania place it at the center of states that are or will likely flip to recreational use over the next few years, thus accelerating its growth profile."
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