With United States cannabis multi-state operators (MSOs) set to hand down their latest financial results starting next week, analysts at Canaccord Genuity (TSX:CF, LSE:CF) expect to see modest sector-wide growth as these companies remained focused on driving profitability during the quarter.
In a note to clients, the analysts wrote that they believe 2Q/fiscal 3Q earnings will come in incrementally higher on a sequential basis but somewhat muted given that most operators are still in the midst of a variety of operational rightsizing initiatives, with profitability prioritized ahead of growth amid macro-level headwinds.
They noted that, per their review of state-level sales data in the United States, retail sales across legal markets were up 3% on average when compared to the previous quarter, being the first three months of 2023.
“Although encouraging, we believe more mature and scaled MSOs will slightly underperform this…
