In a Roth MKM research note, analyst Nick Anderson noted that Verano Holdings Corp. (VRNO:CSE; VRNOF:OTCQX) was well-positioned to generate increasing cash flow.
Roth MKM analyst Nick Anderson, in a research report published on June 18, 2024, provided an update on Verano Holdings Corp. (VRNO:CSE; VRNOF:OTCQX) following the company’s announcement of a share repurchase authorization of up to US$50 million. The analyst maintains a Buy rating on the stock and a 12-month price target of US$10.00.
“Verano announced a share repurchase authorization to buy back up to US$50M in shares as the company looks to support its stock and create shareholder value,” Anderson noted. “As a leading MSO generating strong margins and cash flow (US$73M FCF in ’23), the buyback program provides another outlet to return capital to shareholders while remaining opportunistic around future growth investment opportunities.”
The analyst views the new repurchase optionality positively, especially as Verano shares trade at a lower multiple compared to its large-cap peers. “VRNO shares trade at 4.8x ’25 EV/EBITDA compared to 6.5x for large-cap peers,” Anderson stated.
Anderson highlighted Verano’s focus on generating meaningful cash flow to invest in growth capital expenditure, mergers and acquisitions, paying down debt, and opportunistically buying
