Trulieve Cannabis (CNSX:TRUL) just released its third quarter results, highlighting a smaller net loss and steady sales compared to last year. Investors are also watching the company’s announcement regarding the redemption of outstanding senior secured notes.

See our latest analysis for Trulieve Cannabis.

Trulieve Cannabis has had quite a year. While third quarter results showed improving net losses and the company is taking decisive steps to reduce debt, sentiment in the market has been mixed. The share price is currently at $9.25, with a 1-day share price gain of 5.47%. That momentum followed a tougher month and quarter, as the 30-day and 90-day share price returns are down 15.99% and 14.35% respectively. Despite moderate year-to-date gains, the 1-year total shareholder return remains slightly negative, and longer-term holders have seen steeper declines. This suggests renewed optimism will need to be sustained by future results and operational execution.

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With debt reduction underway and profits still elusive despite improved results, investors have to consider whether Trulieve is undervalued based on future potential or if the market has already accounted for these moves in its current price.

Most Popular Narrative: 51.7% Undervalued

The most widely followed narrative puts Trulieve Cannabis’s fair value at $19.16, nearly double the last close price of $9.25. This large gap fuels debate over the factors driving such a bullish outlook, particularly in a sector noted for volatility and regulatory challenges.

Pending federal policy changes, specifically cannabis rescheduling to Schedule III and progress on SAFER Banking legislation, are expected to substantially lower Trulieve’s tax burden by eliminating the punitive 280E provision and to unlock improved access to financing. These changes could directly increase net margins and cash flow.

Read the complete narrative.

Curious why analysts think Trulieve could be worth so much more? The answer lies in the model’s significant assumptions: regulatory breakthroughs, higher margins, and a profit trajectory that could redefine possibilities for cannabis stocks. Explore how ambitious financial forecasts and key strategic decisions are shaping this aggressive valuation perspective.

Result: Fair Value of $19.16 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, significant regulatory delays or unexpected competitive pressures could quickly challenge the bullish valuation narrative for Trulieve Cannabis.

Find out about the key risks to this Trulieve Cannabis narrative.

Build Your Own Trulieve Cannabis Narrative

Keep in mind, if you see things differently or want to put your own analysis to the test, it takes just a few minutes to craft your unique view. Do it your way

A great starting point for your Trulieve Cannabis research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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