In an assessment by Canaccord Genuity ( CCORF ) published Monday, Cannabist Company Holdings ( CBSTF ) has maintained its Buy rating with a targeted price point of C$1.00, as confirmed by analyst Martin Roberge. This valuation stems from the company’s calculated divestitures and a sharp focus on core growth opportunities, projecting a trajectory that should captivate investor interest.

Cannabist Divests Florida Assets

Roberge's endorsement aligns with Cannabist's ( CBSTF ) recent strategic maneuvers to streamline operations and optimize its asset portfolio, reports TipRanks. These moves are designed to consolidate efforts and resources into more lucrative markets and operational efficiencies. For instance, the company offloaded its Florida-based 40,000-square-foot cultivation facility and 14 dispensaries for $16.4 million, a strategic step back from less profitable markets to fortify its stance in more promising areas.

Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

Verano Acquires Cannabist Subsidiaries In Virginia And Arizona

Additionally, the acquisition of Cannabist's ( CBSTF ) subsidiaries by Verano Holdings Corp. ( VRNOF ) for $105 million further exemplifies the strategic realignment. Verano's ( VRNOF ) takeover includes operations in Virginia and Arizona, enhancing its presence in these key markets, thus reinforcing the industry’s confidence in Cannabist's ( CBSTF ) operational decisions.

Streamlining Operations Boosts Cannabist’s Efficiency

This divestiture strategy is not isolated. It’s part of a broader plan to enhance Cannabist’s financial structure and market positioning. By narrowing their focus, Cannabist ( CBSTF ) aims to bolster its operations and financial health, an approach that Canaccord Genuity ( CCORF ) believes will lead to substantial growth. “This strategic move aligns with our ongoing efforts to build a better business – rationalizing our footprint and focusing on our growth markets to enhance profitability,” said David Hart, CEO of The Cannabist Company ( CBSTF ), in a press release.

Roberge's rating and the set target price reflect a broader market sentiment that Cannabist's ( CBSTF ) current valuation is undervalued, offering an attractive entry point for investors. 

Read Next:

Key Cannabis Leaders Gather For Networking At Benzinga’s Fall 2024 Conference: The Last Big Event Before The Election