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Cowen cuts price target on Green Thumb Industries despite solid quarter

Cowen analyst Vivien Azer on Thursday reiterated an outperform rating on Green Thumb Industries Inc. but cut her price target to $20 a share from $45 after the U.S. cannabis company's latest earnings update. Green Thumb Industries earned $24.44 million, or 10 cents a share in its fiscal second quarter, up from $22.05 million, or 10 cents a share, in the year-ago quarter. Revenue rose 14.6% to $254.31 million from $221.87 million. The company's revenue grew 5% over the first quarter. Green Thumb beat the Wall Street earnings target of 4 cents a share and the revenue estimate of $248.9 million, according to FactSet estimates. Cowen's Azer said despite the "healthy" quarter, she lowered the company's price target to about 4.2 times her fiscal 2022 sales estimate of $1.2 billion. The price target also "contemplates a lack of regulatory catalysts coupled with macro headwinds," Azer said Shares of Green Thumb Industries are down 56.2% in 2022, compared to a drop of 54.1% by the AdvisorShares Pure US Cannabis ETF (MSOS) and a loss of 19% by the Nasdaq. .

-Steve Gelsi

 

(END) Dow Jones Newswires

08-04-22 0700ET

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