KEY POINTS

  • Analysts give Curaleaf a "buy"
  • Sequential revenue growth expected at 142.4% 
  • Price could double in 12 months

Although Curaleaf Holdings stock price has fallen more than 50 percent this year, some analysts view the stock as a bargain. Analysts expect the cannabis company to report revenue of $77.5 million — a jump of 142.4% from $61.8 million in the third quarter.



Motley Fool reporter David Jagielski said he wouldn't be surprised to see Curaleaf's share price double within even the next 12 months. The stock opened $2.89 Monday.



The company, which is scheduled to report its fourth-quarter earnings after market close Tuesday, has set a revenue target of $1 billion for fiscal 2020, driven by acquisitions. The company completed the purchase of Acres Cannabis and Select brand this year. Curaleaf is also working to close the acquisition of Grassroots.

These purchases could significantly expand its operations to 19 of the most attractive marijuana markets, according to Market Realist reporter Rajiv Nanjapla. Curaleaf can make a bigger move in the California market with the acquisition of Cura Partners, Jagielski said.

Nine of 10 analysts polled by Market Realist last week gave Curaleaf a "buy." The other was a "hold."

Not all is rosy on the marijuana stock front, in fact very little is. Jagielski cited Cresco Labs as an example of a company that investors should avoid. Compared to Aurora Cannabis, Cresco looks good because it has more cash on hand. Cresco is in the dispensary business and Jagielski considers the effect of California's lockdown potentially harmful. So far, dispensaries are allowed to deliver in the state. Shares of Cresco are down 75% over the past year.

Aurora also produces and distributes medical cannabis products.