This Weedmaps analyst sees these ‘tailwinds’ for the cannabis tech provider after Q1 earnings
Cannabis Technology Provider WM Technology Inc. PLANSmore commonly called weed cards, published on Wednesday its first quarter financial results ended March 31, 2022, revealing 40% year-over-year revenue growth to $57.5 million.
Net loss was $31.2 million compared to net profit of $7.7 million of the period of the previous year.
Adjusted EBITDA was a loss of $1 million compared to a profit of $9 million of the period of the previous year.
The Weedmaps Analyst
Cantor Fitzgerald’s Pablo Zuanic maintained an overweight rating on the stock, raising the price target from $7.65 to $11.30.
The analyst says there is several “tailwinds” for the company over the next five years:
- Development of industry sales and new store openings;
- Weedmaps increasing the penetration of licensed operators;
- Retailers spend more on marketing, helping the company achieve a greater share of advertising revenue; and
- Weedmaps extends its range of services.
“While our surveys show that retailers (in California, for example) place a high value on the platform as a form of ‘advertising’, the ‘IT solutions’ part of the MAPS investment story is still a work in progress, in our view,” says Zuanic.
The analyst said that given the company recent transactions such as the acquisition of Bec CRM and enlighten, It looks like Weedmaps is working to expand its suite of solutions, and not just organically.
Moreover, Weedmaps being a NASDAQ-listed companyit’s potentially on track for inclusion in the Russell 2000 Index by mid-year, and that makes investors less worried about the technical issues they typically face with OTC multistate traders willingly, he said.
MAPS price action
Shares of WM Technology were trading down 6.07% at $5.88 as of noon Thursday, according to Benzinga Pro.
Photo: Courtesy of Joel Muniz at Unsplash.