Benzinga - by Nicolás Jose Rodriguez, Benzinga Staff Writer.
The multi-state cannabis company Jushi Holdings (OTC: JUSHF), reported a significant increase in unique patient visits in Virginia, indicating robust growth in the fourth quarter of 2023.
Sales reached $67.8 million, exceeding the FactSet consensus of $65.3 million, while adjusted EBITDA stood at $11.3 million surpassing the expected $10.5 million.
Jushi outperformed financial experts' expectations in both sales and profits, noted analyst Pablo Zuanic from Zuanic & Associates in a recent equity research report.
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Financial Health And Market Position
The company aims to handle its $55 million debt due by December 2024 through non-dilutive strategies, ensuring that current shareholders' value remains unaffected.
Currently, the stock trades at 1.5x CY24 EV/Sales, which, according to Zuanic, does not fully account for the potential growth from Pennsylvania and Virginia moving to recreational cannabis sales.
Regulatory Landscape And Expansion Potential The report also delves into the state regulatory outlook, especially focusing on Ohio, Pennsylvania, and Virginia, where about 70% of the company's stores are located.
Virginia is on the verge of starting recreational sales by May 1, 2025, pending the Governor's approval.
Meanwhile, Pennsylvania is progressing with bipartisan bills, aiming to finalize recreational sales legislation by June 30 and Ohio is anticipated to begin recreational sales in 4Q24, offering Jushi additional expansion opportunities.
Market Dynamics And Valuation Jushi shares experienced a 22% decline over the last 30 days, attributed to regulatory news flow and market dynamics.
However, Zuanic believes the stock will perform better than the average return of other stocks in the same sector or industry and maintains an Overweight stance, citing its underappreciated market valuation and significant upside potential from its operations in Pennsylvania and Virginia.
Despite current market volatility, Jushi's strategic positioning and financial health suggest a promising outlook for investors.
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Photo: AI-Generated Image.
Latest Ratings for JUSHF
| Nov 2021 | Cantor Fitzgerald | Maintains | Neutral | |
| Oct 2021 | Cantor Fitzgerald | Maintains | Neutral | |
| Aug 2021 | Cantor Fitzgerald | Maintains | Neutral |
View the Latest Analyst Ratings
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