U.S.-based Cresco Labs Inc. (CL-CN) is "putting the pieces together for market dominance," according to Canaccord Genuity analyst Derek Dley.
"We are updating our estimates to account for the recent M&A activity within the cannabis space, notably for Cresco the acquisitions of Origin House and VidaCann," he said. "Furthermore, with Illinois formally announcing plans to implement a recreational cannabis market at the beginning of 2020, we have updated our forecasts for the state."
With a "speculative buy" rating, Mr. Dley hiked his target to $22 from $15. The average on the Street is $21.95.
"In our view, Cresco is well positioned to capitalize on the increasing acceptance of cannabis within its core states, boasts a best-in-class management team, and offers investors a differentiated cannabis opportunity through its focus on both wholesale and retail," he said.