Cannabis company Green Thumb Industries Group Inc.’s GTBIF, -1.69% GTII, -1.87% first-quarter results beat revenue targets but missed his target for adjusted operating earnings before interest, taxes, depreciation and amortization (Ebitda), Benchmark analyst Mike Hickey said in a Thursday research note. The company’s drop in Ebitda “largely reflected inflation on raw material input and additional compensation for talent throughout the organization,” Hickey said. “The decrease also reflected pricing headwinds in Pennsylvania, Nevada and Massachusetts. We are cautious on inflationary impacts over the consumer and operating expenses, which could sustain over the medium term.” Hickey estimates Green Thumb’s New Jersey business will generate $625 million to $775 million of revenue in 2022. Green Thumb Industries shares are down 42% in 2022 compared to a loss of 42% by the AdvisorShares Pure US Cannabis ETF MSOS, -0.34%.
