Surprising Endorsement Q: With target prices from many brokerages ranging between $85 and $96 ... is TRUL undervalued and is this a good buy at this price?
The company has certainly been busy with new dispensary openings across the US, and the rapid quarter-over-quarter sales growth reflects these openings. The company has very little debt, lots of liquidity, a good cash balance, and an expanding equity position. It is cash flow negative but has more than enough liquidity to service its debts, and for a company growing almost 100%, is valued decently. Forward price to sales is 3.3X and forward P/E is 21.5X. We would consider this a great price for the stock.
So said the team at 5iResearch last Thursday. Bearing in mind that they are not big fans of the MJ sector in general, this is a strong endorsement. GLTA