Cantor Fitzgerald: Cresco Is 'Top Pick', Raises Price Target By More Than 50%

Cantor Fitzgerald maintained its rating of ‘Overweight’ for Cresco Labs Inc (OTCMKTS: CRLBF) and raised its price target from $12 to $19, calling the stock a “top pick.”

Citing Cresco’s position to grow as a dominant player in other states, like Cresco has done in Illinois, Cantor's Pablo Zuanic said Cresco is looking to grow its foothold in Pennsylvania and Massachusetts, where the company is currently the number two supplier.

“That said, despite talk of increased competition, Cresco brands have kept their #1 position in IL wholesale, and #2 in PA/MA, according to management; and we believe the company must have share of shelf depth as it has garnered these metrics selling into fewer stores (1,100) than others claim (2,000),” said Zuanic, who added that Cresco, along with other multi-state operators, are expected to trade higher in the coming days as Republicans released a bill on Monday to legalize cannabis.

Cresco’s stock traded down on Monday, closing at $9.17, down more than 10% from its intraday high of around $10.50. This was in line with many other stocks in the cannabis sector, that traded higher early on Monday only to give back all gains and then some.

Investors should have cannabis stocks on their watchlist this week, as legislators discuss reform, which will likely impact prices.
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