Curaleaf Holdings Inc. shares (OTC:CURLF) (CNQ:CA:CURA) fell 2.1% Tuesday, after a report highlighted difficulties facing the company in the Florida market. MKM analyst Bill Kirk said the number of dispensary locations in the Sunshine State are growing faster than the number of patients and that's bad news for Massachusetts-based Curaleaf because it generates about 59% of its retail sales there. In the week to Oct. 17, locations rose 183% from the year-earlier period, while patient numbers rose just 115%. MKM estimates that 754,335 THC milligram equivalents were sold in the week, marking the worst week in a dataset that started the week of July 18, including the week that was hit by Hurricane Dorian. What's more, "it appears Curaleaf is having a flower supply issue: Curaleaf ounces of flower sold were just 795oz the week of October 17, down from 1,780oz and 2,362oz in the preceding weeks," Kirk wrote in a note to clients. "795oz represents just a 6.6% share of industry flower sold in the period, despite Curaleaf having 14.4% of all dispensary locations." The analyst said comments from customers showed disappointment that the company had no flower to sell, and said he expected the company would struggle to win them back. Kirk rates Curaleaf's Canada-listed stock a sell and has a stock price target of C$5 ($3.8), or 36% below its current trading level.
Oct. 22, 2019, 2:01 p.m. EDT