Curaleaf Earnings: Shares Offer Risk-Adjusted Upside as Market Underappreciates Growth Opportunities

We expect to lower our $13/CAD 17.50 fair value estimates for Curaleaf by a low- to mid-single-digit percentage after reviewing second-quarter results. Although management had always said growth would be weighted toward the back half of the year, guidance now indicates higher investment in its Florida, international, and hemp operations. As such, it continues to expect full-year revenue growth at a mid-single-digit percentage but an adjusted EBITDA margin at the lower end of its mid-20s range. This compares with our earlier forecast for sales growth and EBITDA margin of 7% and 26%, respectively, so we expect to lower the latter.