Unearthing The Potential: Words of Pablo Zuanic from Zuanic & Associates stir up excitement as MariMed Inc. (MRMD) gears for an ascent in the cannabis sphere.
Company Prospects And Market Position
Budding in the expanding states of Illinois, Maryland, and Massachusetts, MRMD braces for growth, despite a reserved 4Q23 outlook.
Zuanic predicts MRMD surging into the top 10 Multi-State Operator (MSO) list by 2025, propelled by a sturdy balance sheet and heavy capital investment.
MariMed boasts one of the healthiest balance sheets among MSOs and trades at an appealing valuation of 1.4x EV/Sales versus the 2.2x MSO average.
Zuanic foresees a glaring undervaluation given MRMD’s solid position and growth momentum.
Financial Performance And Outlook
Per Zuanic, projected 4Q23 sales of $38-40 million may languish due to tardy Illinois wholesaling. Yet, envisioned growth drivers include expansions in Illinois and Maryland and retail/wholesale thrusts in Massachusetts.
Notably, MRMD’s recent debt refinance spells substantial cost savings, spotlighting a promising fiscal trajectory.
Market Dynamics And Expansion
MRMD is outperforming in Illinois with dispensaries trumping peers by 30%. Vape/edibles advent and a new store could ignite revenues as Illinois’ $2 billion industry beckons.
In Massachusetts, MRMD reigns as a key wholesaler with growth glimpses in the edibles niche, despite market strain from increased licenses.
Potent sales and improved retail execution hoist MRMD in Maryland as it seeks expansion in Ohio, Missouri, and Delaware.
Strategic Position And Valuation
Strategically postured for growth, MRMD eyes the top 10 MSOs ranking by 2025 as it forays into fresh states through mergers/acquisitions or licensing.
Zuanic’s bullish rating mirrors an optimistic growth and market position forecast for MRMD.
