Update shared on 07 Nov 2025
Fair value Increased 7.07%Trulieve Cannabis’s analyst price target has been raised from $17.89 to $19.16. Analysts cite improved revenue growth projections and stable profit margins as key drivers for the upward revision.
Analyst Commentary
Following Trulieve Cannabis’s recent price target revision, analysts have provided a range of perspectives regarding the company’s near-term performance and long-term prospects. The following summarizes the most notable bullish and bearish considerations highlighted in the latest research and commentary.
Bullish Takeaways- Bullish analysts point to improved revenue growth projections, reflecting stronger execution in core markets and supportive industry dynamics.
- Stable profit margins are seen as an indication of effective cost management, contributing to earnings resilience even as the company invests in expansion.
- Several models now assume an increased pace of new store openings. If achieved, this could drive further market share gains and enhance top-line momentum.
- The risk/reward profile is regarded as increasingly attractive, with valuation multiples perceived as reasonable relative to peers given the company’s growth outlook.
- Bearish analysts highlight regulatory risks within the cannabis sector, which could introduce operational uncertainty or impact near-term revenue visibility.
- Ongoing investments in expansion and product development may pressure free cash flow in the short term, raising questions about financial flexibility.
- Some remain cautious around competitive pressures in key geographic markets, suggesting potential headwinds to achieving ambitious growth targets.
- There are concerns that the current price target reflects a best-case scenario for execution, leaving limited room for error if macro conditions or company-specific drivers falter.
What's in the News
- President Donald Trump is reportedly considering reclassifying marijuana as a less dangerous drug. This move could make it easier to buy and sell cannabis and potentially impact companies such as Trulieve Cannabis (The Wall Street Journal).
- Trulieve Cannabis announced the launch of five new flavors of its Onward and Upward THC-infused beverages, now available online and at retail locations in Florida and Illinois.
- The company has expanded its retail footprint by opening new dispensaries in Bisbee, Arizona and Cincinnati, Ohio. This expansion enhances access to its in-house and partner brands.
Valuation Changes
- The Fair Value Estimate has increased from $17.89 to $19.16, reflecting a modest upward revision in analyst assessments.
- The Discount Rate has risen slightly, moving from 6.30% to 6.45%, indicating marginally higher perceived risk.
- Revenue Growth Projections have been upgraded, climbing from 1.73x to 1.99x.
- The Net Profit Margin has remained nearly flat, moving minimally from 1.20x to 1.21x.
- The Future Price-to-Earnings Ratio (Future P/E) has increased from 203.0x to 212.0x, suggesting higher valuation expectations for future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.