Cresco Labs downgraded to Neutral at Piper on lack of clear catalysts

As previously reported, Piper Sandler analyst Michael Lavery downgraded Cresco Labs to Neutral from Overweight with a price target of $2, down from $5. While the firm continues to believe Cresco is well-positioned in the U.S. and views it as "a leading operator" in legal U.S. states, Piper expects a lack of clear near-term regulatory catalysts to weigh on the shares in addition to price compression and broad macro pressure. Despite near-term wholesale headwinds, the firm thinks Cresco’s long-term strategic focus is intact and expects Cresco’s retail expansion will likely be its primary growth lever.