The Globe and Mail reports in its Thursday, Dec. 4, edition that ATB Capital Markets analyst Frederico Gomes has upgraded his recommendation for Cresco Labs to "buy" from "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Gomes gave his share target a 25-cent boost to $2.50. Analysts on average target the shares at $2.43. Mr. Gomes says in a note: "We [see Cresco] as a beneficiary of an improving 2026/27 industry backdrop. Following a 10-per-cent top-line contraction in 2025, we forecast revenue stabilization in 2026, anchored by the company's competitive position in Pennsylvania, Illinois and Ohio, alongside emerging contribution from Kentucky. While current adj. EBITDA margins (low-to-mid 20s) reflect operating deleverage relative to top-tier peers, we believe Cresco's FCF generation and liquidity profile (no near-term maturities) offer capital allocation optionality: the company is well-positioned to pursue M&A in new markets (e.g., New Jersey, Maryland), or to scale its international footprint in Germany. We view Cresco as an efficient operator with the balance sheet capacity to pivot back to growth, justifying our constructive rating change."
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