MariMed Wholesale Revenue Up 48% Driven By Top Marijuana Brands: Why Is This Weed Stock Undervalued?
Portfolio Pulse from Nicolás Jose Rodriguez
MariMed Inc. (OTC:MRMD) reported a 48% increase in wholesale revenue for 2023, with projections of over 20% growth for 2024, despite its CY24 sales guidance being below expectations. The company trades at 4.6x EBITDA, below the MSO average of 7.3x. Analyst Pablo Zuanic maintains an Overweight rating on MRMD, citing strong wholesale growth and underutilized brand power, despite a 21% decrease in MRMD shares over the past 90 days. The MSOS ETF (NYSE:MSOS) has only 1% ownership in MariMed, compared to 10-14% for companies like Jushi (OTC: JUSHF) and AYR (OTC:AYRWF), contributing to MariMed's underperformance. Zuanic sees limited downside risk and potential for future gains, especially with strategic expansions.
March 13, 2024 | 8:25 pm
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NEGATIVE IMPACT
The MSOS ETF has only 1% ownership in MariMed, contributing to MariMed's underperformance compared to its peers and the broader market.
The low ownership percentage by MSOS ETF in MariMed, compared to other cannabis companies, may contribute to investor perception and MariMed's relative underperformance in the market.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
AYR is highlighted for having a substantial ownership by the MSOS ETF, potentially contributing to its favorable market performance compared to MariMed.
Similar to Jushi, AYR's notable ownership by MSOS ETF may lead to increased investor confidence and a stronger position in the market, compared to companies like MariMed with lower ETF ownership.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Jushi is mentioned as having a significantly higher ownership by the MSOS ETF compared to MariMed, which may influence its market performance positively.
The higher ownership by MSOS ETF in Jushi compared to MariMed suggests a stronger market confidence and potential for better performance in the stock market.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
MariMed reported significant wholesale revenue growth and is projected to continue growing, but its CY24 sales guidance is below expectations. Despite this, the stock is considered undervalued by analysts.
The positive outlook from analysts, based on strong wholesale growth and strategic expansions, suggests potential for stock appreciation despite recent underperformance and conservative sales guidance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100