Trulieve: As Regulatory Headwinds Wane, Value Creation Is On The Cards

Disruptive Investor 5.49K Followers Follow Summary Trulieve Cannabis Corp. is reinitiated as a Buy, driven by regulatory catalysts and attractive valuation after a recent 81% rally. Rescheduling of medicinal cannabis to Schedule III eliminates punitive tax burdens, boosts cash flows, and enables greater R&D and financing flexibility for TRLV. TRLV is well-positioned for growth through Florida consolidation, expansion into Texas and Alabama, and potential upside from a $583M tax liability reversal. Trading at a forward EV/EBITDA of 6.92 versus a sector median of 12.5, TRLV offers compelling value and strong balance sheet support amid competitive risks. halbergman/E+ via Getty Images Investment Overview In September 2024, I initiated coverage on Trulieve Cannabis Corp. ( TRLV ) with a Buy rating and an initial investment horizon of 24 months. While I had a positive view, I noted that the “bullish This article was written by Disruptive Investor 5.49K Followers Follow Analyst with interest in various asset classes for portfolio diversification. My field of expertise includes equities, precious metals, commodities and cryptocurrencies. Special interest and love for economics. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.