Curaleaf Earnings: Few Surprises but Still Well-Positioned for Many Tailwinds; Shares Undervalued

No-moat Curaleaf reported steady first-quarter results that were within our expectations. Sequentially, net revenue shrank 2%, reflecting the seasonality in the business. Moreover, Curaleaf’s adjusted EBITDA margin of 23% remained within range of recent quarters. Management maintained full-year guidance for mid-single-digit revenue growth and adjusted EBITDA margin in the mid-20% range. This compares with our preresults forecasts of 6% and 25%, respectively. As such, we expect minimal changes to our USD 13/CAD 17.50 fair value estimates. We continue to see Curaleaf as one of the most attractively priced cannabis stocks.